According to excerpts from the document, an article dated August 4, 2023 mentioned that if the branch structure is changed, "it will no longer be possible to pre-buy inventory" and the settlement of the remaining amount of goods must be done with direct capital from the record label. The phrase "no longer possible" makes many netizens speculate that the "pre-buying" method used to be used frequently.
In another section, the document detailed the inventory volume of many issuances: there were cases where initial inventory reached 500,000 copies, of which 150,000 copies were recorded as needing to be returned; other cases ranged from 70,000 to 200,000 copies under processing. Although the document did not specify the final fate of the entire shipment, information about the large scale of inventory raised suspicions about how sales were calculated.
In the K-pop industry, "pre-buying" is not a strange concept. Some companies may order large quantities of albums to ensure distribution or serve promotional campaigns. However, the controversial issue is whether this sales volume is recorded as actual sales to consumers, and whether subsequent returns affect the transparency of the data.
On Korean forums, there are many controversial opinions. A part of netizens believe that if sales are "exaggerated" and then refunded, this may affect the rankings, music awards and artist images. Conversely, there are also cautious opinions, saying that it is necessary to wait for official conclusions from the court instead of just relying on excerpts from documents.
Up to now, HYBE has not issued a detailed notice responding to each content in the circulating documents. Legal disputes between the two sides are still ongoing, in the context that Min Hee Jin previously proposed a settlement solution by giving up the option to sell shares, in order to create conditions for restructuring activities related to the NewJeans group.
The case once again raises questions about the transparency in the physical album sales system - a factor that plays an important role in establishing the achievements, rankings and awards of K-pop artists.
