According to Allkpop, South Korea's leading entertainment group HYBE once again became the focus of criticism after allegations related to the acquisition of Ithaca Holdings from Scooter Braun in 2021 were suddenly reignited.
Recent reports and many online discussions suggest that about 120 billion won (83 million USD) of debt received by HYBE in this deal - which was linked to Scooter Braun's previous business operations - was paid with the company's capital, most of which came from BTS, HYBE's main artist at that time.
In April 2021, HYBE (then still known as Big Hit Entertainment) announced its merger with Ithaca Holdings, valued at over 1 billion USD. This deal brought famous artists such as Justin Bieber, Ariana Grande, Demi Lovato and Big Machine Label Group under HYBE's command. At that time, this was considered a strategic step to expand HYBE's presence in the US market.
However, subsequent financial reports showed that the total cost of the deal was much higher than the initial figure, reaching approximately 1.2 trillion won (about 1.05 billion USD). This figure includes not only the purchase price but also the receipt of Ithaca's existing debts, estimated at about 120 billion won.
Critics argue that this debt originated from loans that Scooter Braun used to buy back Taylor Swift's recording rights through Big Machine in 2019 - a controversial move that led to a public conflict with the female singer.
According to reports, after selling Taylor Swift's master at the end of 2020 and earning large profits, Ithaca shareholders (including Scooter Braun) divided profits in dividends, while the remaining debt remained on the company's books. HYBE then took responsibility for this debt upon completion of the acquisition.
To finance the deal, HYBE is said to have used 74% of its cash reserves and borrowed an additional 560 billion won.
In the period 2020-2021, BTS contributed the majority of HYBE's revenue through global tours, album sales and goods, becoming the company's main financial pillar during that period.
The accusation that HYBE indirectly used BTS's money to pay off Scooter Braun re-emerged in early January 2026. This raised doubts about the allocation of resources and whether this deal would really benefit HYBE's core Kpop activities.
NewTamsa newspaper directly contacted HYBE Chairman Bang Si Hyuk to ask for his opinion, but received no response.
As of January 8, 2026, HYBE has not issued any new statements about these specific accusations. Previously, the company described the Ithaca deal as a resonance expansion, taking advantage of common expertise to connect the Kpop market with the Western music market.
HYBE leaders once defended the value of the deal, citing expected synergistic benefits, despite many challenges arising afterwards - such as the departure of some artists managed by Ithaca (Ariana Grande, Justin Bieber) and Scooter Braun resigning as CEO of HYBE America in July 2025.
The time the controversy broke out coincided with the time when the public was waiting for the reunion of BTS and group activities after the members completed their military service.
Many fans demand that HYBE be more transparent in using revenue. As HYBE prepares to enter the next chapter with BTS, suspicions surrounding past financial decisions have not shown signs of cooling down.
