They underestimated their sales.
This was discovered recently MOVES owes approximately ₩125 million KRW (approximately $90,500 USD) to the government in waste disposal fees. In 2023, they produced approximately 1,397 tons of plastic. Of the plastic produced last year, 1,249 tonnes (89%) were used to produce singer albums and 148 tonnes (11%) were used to produce goods.
In South Korea, difficult-to-recycle materials, including plastic, must be paid for when they are disposed of. This waste tax is managed by importers and manufacturers such as HYBE and various entertainment companies. They must report sales, emissions and other evidentiary materials for the year for the government to calculate through the environment department.
It was revealed that HYBE underreported its sales numbers to pay less disposal fees. According to their financial statements, sales for 2023 were approximately ₩2.18 trillion KRW (approximately $1.58 billion USD), which translates to ₩276 million KRW (approximately $200,000 USD) in disposal fees. HYBE instead listed its sales as ₩2.18 billion KRW (approximately $1.58 million USD), resulting in commissions of ₩150 million KRW (approximately $108,000 USD).
The government only recognized this months later, in October 2024, after the initial bill in April. They sent an additional invoice to HYBE for unpaid ₩125 million KRW (approximately $90,600 USD).
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