Unveiling HYBE's Financial Controversy: BTS's Role in Debt Settlement
South Korean entertainment company HYBE is facing renewed criticism over allegations related to its acquisition of Scooter Braun's Ithaca Holdings in 2021. Reports suggest that HYBE used company funds, largely generated by BTS, to pay off approximately 120 billion KRW in debt linked to Braun's previous business ventures.
In April 2021, HYBE announced a merger with Ithaca Holdings, valued at over 1 billion USD, bringing artists like Justin Bieber and Ariana Grande under its umbrella. The total cost of the deal, including assumed debts, exceeded initial estimates, reaching around 1.2 trillion KRW.
Critics claim that the debt HYBE assumed was connected to Braun's controversial acquisition of Taylor Swift's master recordings in 2019. After selling Swift's masters for a profit in late 2020, Ithaca shareholders reportedly distributed dividends while leaving residual debt, which HYBE absorbed during the acquisition.
To finance the deal, HYBE used cash reserves and borrowed additional funds. BTS played a significant role in generating revenue for HYBE through global tours, album sales, and merchandise during 2020-2021.
Allegations resurfaced in early 2026, suggesting that BTS's earnings indirectly funded the debt payoff, sparking concerns about resource allocation and the impact on HYBE's core K-pop operations. Fans and netizens expressed outrage over the situation, questioning the company's financial decisions.
HYBE has not responded to the specific claims, but has previously defended the Ithaca acquisition as a strategic move to bridge K-pop and Western markets. The controversy comes as fans await BTS's full group reunion and activities following members' military service completions in 2025.
As the story continues to unfold, fans are divided between supporting HYBE's decisions and calling for more transparency in how revenues are managed. The scrutiny over HYBE's past financial moves persists as the company prepares for BTS's future endeavors.