Exclusive
International body launches re-verification of HYBE's sustainability report following Hanni's National Assembly testimony

[비즈한국] It has been confirmed that AccountAbility, a global organization that sets sustainability standards, has launched an investigation into potential discrepancies in the sustainability management report published by HYBE352820. HYBE has been disclosing its sustainability management reports since 2022 with certification from the Korea Management Registrar (KMR), and this investigation represents a re-verification of that certification. Currently, AccountAbility has requested a response from KMR regarding the alleged discrepancies in the report. Depending on the investigation's findings, KMR's certification of HYBE's sustainability report could be revoked.

AccountAbility investigates HYBE's sustainability management report

In publishing its sustainability management report, HYBE stated that it had been verified by the Korea Management Registrar (KMR) using standards set forth by AccountAbility. HYBE voluntarily disclosed its 2023 sustainability management report on June 28.

However, it has recently been confirmed that AccountAbility has initiated an investigation into potential "discrepancies" in HYBE's sustainability report. Bizhankook's investigation reveals that after receiving reports from stakeholders alleging incorrect information—or discrepancies—in HYBE's report, AccountAbility conducted an initial inquiry and has now requested a response from the certifying body, KMR.

If AccountAbility concludes that there is false information in HYBE's sustainability report, the report will be removed from the list of AccountAbility-certified reports, along with requirements for corrective actions regarding the errors.

Regarding this, a KMR official stated, "AccountAbility recently requested our response on behalf of stakeholders, claiming there were discrepancies in certain parts of the sustainability report. Our verification review team is currently checking the verification process and results regarding the specific suspicious discrepancies raised through AccountAbility."

The official explained, "Since the disclosure of a sustainability management report is not mandatory, there are no legal penalties or audit-level investigations just because there is incorrect information. If there are errors, we can request corrections and re-disclosure. However, the action taken depends on the importance of the issue. If the matter is significant enough to violate AccountAbility’s assurance standards, we could potentially withdraw the verification statement."

Did the human rights violation reporting process fail to function?

According to Bizhankook’s report, the area where AccountAbility suspects discrepancies in HYBE's sustainability management report is "human rights management." The claim is that the testimony given by Kim Ju-young, HYBE's Chief Human Resources Officer, during the October 15 National Assembly Environment and Labor Committee audit does not align with the human rights violation reporting process described in the sustainability report.

According to the process specified in the sustainability management report, when an act of human rights infringement, such as workplace bullying, is reported, HYBE’s human rights management team must investigate the claim and share the progress and results with the whistleblower.

Regarding the workplace bullying incident raised by NewJeans member Hanni during that audit, Chief Human Resources Officer Kim Ju-young (who also serves as the CEO of ADOR) stated, "I first heard about it from her parents on June 13. As one of the internal directors, I requested a check of the CCTV footage with the thought that I should protect the artist. The manager mentioned is not an ADOR-affiliated manager, but one from a different company under the CEO. Nevertheless, I requested that the relevant label verify whether such a fact occurred between the artist and the manager. Unfortunately, as far as we have internally determined, the parties' claims are currently in conflict."

Representative Park Hong-bae of the Democratic Party asked Kim Ju-young, "If you are the Chief Human Resources Officer of HYBE, you tried to mediate, but the other label (BELIFT LAB) did not respond. Does that make any sense?" and added, "Are artists not considered members [of the company]?"

In response, Kim Ju-young explained, "Our code of respect contains provisions that not only members but also members and artists, as well as members and external partner companies, must respect each other when collaborating." When Rep. Park asked again if artists are included as HYBE members, Kim answered, "In a broad sense, yes."

The details provided by HYBE label BELIFT LAB also conflict with the content of HYBE's sustainability management report. In a statement on October 7, BELIFT LAB confirmed that the manager accused of telling NewJeans member Hanni to "ignore her" is an employee of BELIFT LAB. The statement specified that after BELIFT LAB investigated the incident, it conveyed the findings during a face-to-face meeting between the new ADOR board members and NewJeans' parents.

Previously, a KMR official mentioned, "The investigation period usually takes about a week, but it may take longer if the target company's response is delayed."

Meanwhile, Bizhankook reached out to HYBE regarding all related matters, but did not receive a response.