Big Hit Entertainment refutes news reports
There have been some scandals regarding K-pop superstar BTS as the seven-piece boy band gained global popularity over the past several years. And the group and its agency Big Hit Entertainment have managed to work through them in a smooth way.
However, there emerged the latest scandal, and this time around, it is about a conflict between its members and Big Hit itself, which Korean TV station JTBC reported early this week.
Big Hit wasted no time in denying the reports that BTS members are considering legal action against the Seoul-based label, which debuted the K-pop act in 2013.
It remains to be seen how this case progresses.
JTBC reports generate controversies
On December 9, JTBC reported that BTS members recently met with a top law firm to check legal action against Big Hit Entertainment with regard to profit distribution.
Big Hit saw its sales rocket from a mere 35.2 billion won ($27.3 million) in 2016 to 92.4 billion won in 2017, and 214.2 billion won last year. Its operating profits also jumped from 10.4 billion won in 2016 to 32.5 billion won in 2017, and 64.1 billion won last year.
This year, its turnover is expected to top 300 billion won ($252 million) for an operating income of almost 100 billion won ($84 million).
In line with the rising bottom lines, the corporate value of Big Hit is predicted to surge to almost 3 trillion won ($2.52 billion) according to some media reports.
From the perspective of Big Hit, it was an excellent choice to renew its contracts with all of the seven BTS members for another seven years in late 2018. That means that the contracts will last through 2027.
Against this backdrop, JTBC reported that BTS members and Big Hid had disagreed about profit distribution, which resulted in their consideration of legal options.
Big Hit denies JTBC reports
Big Hit instantly came up with an official statement to refute the JTBC reports.
The agency said that BTS members did consult with a law firm in northern Seoul two months ago about the contracts between them and Big Hit, but the consultation has nothing to do with any legal action.
The reports that BTS members and Big Hit have been in disputes are not true, according to the agency.
“Big Hit has encouraged BTS members and their parents to seek advice from accountants and lawyers over various issues. It is natural for them to seek third-party professional opinions as the value of BTS is growing,” it said.
“It is not true that BTS members and their parents are set to take legal action against Big Hit. We have no choice but to ask why the TV station came up with these kinds of reports.”