UEH UNIVERSITY

COLLEGE OF BUSINESS
SCHOOL OF MANAGEMENT

Individual project

RESPONSE TO THE FUTURE FRAMEWORK

HYBE CORPORATION

Lecture: Trần Trọng Thùy

Name: Đoàn Thị Ánh Dương
Class: ADC02
Student ID: 31211023880
Course: Organizational
Behavior

Ho Chi Minh City, November 2, 2022

1
 HYBE Corporation is an entertainment company
formed through the re-branding of Big Hit
Entertainment. The company operates as a record
label, talent agency, music production company, event
management and concert production company, and as
a music publishing house. The company has multiple subsidiaries, including Big Hit
Music, Source Music, Pledis Entertainment, Belift Lab, KOZ Entertainment, and ADOR,
collectively known as HYBE Labels.
COMPANY BACKGROUND AND CONTEXT
Company history:
Big Hit Labels was founded on February 1, 2005, by Bang Si-hyuk. Big Hit used to be a small
company with no reputation and influence. To have the success and influence of today has
been a difficult process. Both the company, and the members of Big Hit's family, have tried
to rise a lot. When it was first established, this entertainment company signed a contract
with 8Eight in 2007. After 3 years, Big Hit and JYP Entertainment signed a joint
management contract for the boy group 2AM. At the same time, Bang Si-hyuk continues to
sign a contract with RM - the first member of BTS.
Since BTS' debut days, Big Hit has used the 2nd floor of a building as its headquarters. At
that time, it was a very difficult time for the company and BTS. Because all 7 people share
a dormitory room located on the 3rd floor of the building. In 2017, Big Hit moved the tower
to a new, bigger and much better building. In which, there are many rooms with different
functions such as changing room, vocal practice room, dance room... By 2020, the company
will move to a new headquarters, consisting of 19 floors and 7 basements... Finally, after
many efforts, BTS and the company have achieved certain successes.
On March 10, 2021, Big Hit officially changed its name to Hybe Corporation. Along with
that is a change in organizational structure, operation method, headquarters, etc. The
rebranding was completed at the General Meeting of Shareholders on March 30. Big Hit's
record label is maintained with the Big Hit Music label under HYBE. The "parent company"
HYBE manages Big Hit Music, BELIFT LAB, Pledis Ent., Source Music, KOZ Ent. and HYBE
Labels Japan. Not only operating in the field of music and performances, but Hybe
Corporation also deals in Internet and real estate.
Company’s vision:
“We believe in Music.”
Company’s mission:
“HYBE strives for the world’s best entertainment lifestyle platform company based on
music.”
2
Purpose of business:
“We bring change to life by creating resonance across the world and innovation throughout
industries.”
With that purpose of business, HYBE Corporation builds up Business division including
HYBE Labels, HYBE Solutions, and HYBE Platform.
HYBE Labels: Each label engages in unique and independent creative and activites. This
part consists of Big Hit Music, Belift Lab, Source Music, Pledis Ent., KOZ ENT., HYBE LABEL
JAPAN, and ADOR.
HYBE Solutions provides business solutions to our labels, and drive business initiatives
based on music including performances, multimedia content, IP, education, and games.
This division covers HYBE 360, HYBE IPX, HYBE SOLUTIONS JAPAN, HYBE IM, and HYBE
T&D JAPAN.
HYBE Platforms connects and expands all HYBE contents and services. Weverse Company
is the only one in this divisions.
Profit growth:
From a nameless company, going through 17 years with many ups and downs, HYBE and
its artists now have a certain place in the entertainment world. According to the latest
financial report, by the end of 2021, HYBE has achieved impressive numbers (￦100M):

• Total Assets: 47,289.2

• Total Liabilities: 18,423.3
• Total Shareholders’ Equity: 28,865.9
• Owners of Parent Equity: 28,119.3
• Capital Surplus: 24,698.7
The growth of HYBE’s finance is presented as follows (2018-2021):

Total assets Total Liabilities Total Shareholders’ Equity

Industry and the company’s current situation:
3
 • K-pop Industry
In the age of YouTube and music streaming apps, K-Pop is now a billion-dollar industry. If
the K-Pop industry is well-trained and remarkably successful, in the future, K-Pop will not
only be confined to Asia but also spread to other regions around the world, such as Europe
and America.
K-Pop is not only music but also the source of new fashion trends for young people, ranging
from clothes, and accessories to makeup. Idols and K-Pop artists are a source of
exploitation for fashion brands to advertise their brands to potential customers who are
K-Pop fans.
Thanks to the influence of K-Pop, the Korean economy has grown significantly in recent
years. Many prominent men in the Korean entertainment industry have also appeared in
Forbes' list of USD billionaires. In 2019, the wave of Korean culture such as K-Pop, dramas
contributed about 12.3 billion USD to the economy of this country.
Thanks to K-Pop, Korea's national brand image has been much more popular. More and
more foreigners are interested in learning the Korean language, and K-Pop has also been
promoted around the world. K-Pop also exploits many new directions to contribute to the
development of this country's industry.
• HYBE’s current situation
HYBE has become the first Korean entertainment company to reach over 1 trillion won in
annual sales. Possessing many talented artists such as BTS, Seventeen, and ENHYPEN,
HYBE is gradually dominating the Korean music industry, setting a new sales record that
no other entertainment company has.
On February 22, HYBE announced its business results for the fourth quarter of 2021
including album sales, advertising, live & online concerts, etc. In the past year, the company
recorded a sale of 1 .25 trillion won, an increase of 58% compared to 2020. In which,
operating profit also increased by 30.8% year-on-year to 190.3 billion won, while net profit
reached 141 billion won. In the past year, many businesses have been severely affected by
the COVID-19 pandemic. In contrast, HYBE's revenue grew at the highest rate ever.
PROPOSING THE COMPANY’S FUTURE WORKPLACE AND FRAMEWORK
Individual commitment:
HYBE innovates the music industry business model under the mission, "We believe in
music". HYBE strive for the world's best entertainment lifestyle platform company based
on music. "Content" that lead the global trend and "fans" who are our customers are the
two pillars to our values, and HYBE will be committed to satisfying its customers by
continuously improving its services with the highest standards.
4
Organizational effectiveness:
Because the company is in the development stage, the potential for growth comes with
insecurity.
One of the new updates about the organization is horizontal communication, which was
cited as one of their values. This could be applied in a few different ways. Generally
speaking, horizontal communication is intended to enhance coordination peer-to-peer and
isn’t as attached to rigid company hierarchies as vertical communication. Although they
are geared towards a horizontal organizational culture, most of the work is still done
according to high-level decisions without a system. Not only that, because HYBE grew big
so rapidly, the company did not have a clear internal system. In the future, HYBE should
organize its system to response every specific mission.
Organization productivities:
Until 2025, BTS’s members were set to serve in the South Korean military, meaning no new
tours or music for several years. The fact that most of the income of HYBE is came from
BTS, which means HYBE will lose a great amount of money during this period.
HYBE must prepare carefully for this event like debuting new groups, promoting current
artists, expanding the business, ect. These activities will help HYBE to be less dependent on
BTS. This years, HYBE has released two new Girlgroups (Le Sserafilm, New Jeans) who are
gifted and they all gained some amazing achievements. On the other hand, HYBE also has
many famous groups like TXT, Enhypen, Seventeens, ect. HYBE needs to manage these
potential groups to expand its influences in the industry.
Organization citizenship behavior:
HYBE’s courtesy is shown in every corner of its building. The design of the building is
geared towards the comfort and convenience for the employees, not their idols. That is an
ideal workplace for encouraging the flexibility to be creative — which is essential in an
entertainment company producing art — as well as a growth and improvement mindset.
HYBE greatly emphasizes their shared organizational values that must be applied on all
levels, starting with workspace design choices, and staying aligned with employees’ needs
and best interests.
Culture:
In the early months of 2021, the company behind BTS announced that they were adopting
a new name, switching from Big Hit Entertainment to HYBE Corporation. For the new
brand’s launch, they posted a forty-minute-long video where the main executives
explained how the rebranding would affect different aspects of the organization and the
culture. The new HYBE building was designed with a clear philosophy that reflects their
brand identity, making it the perfect example for us to examine.
5
Work culture includes the attitudes, principles, and ideologies that guide the actions of a
company and its employees. Min (CBO of the company) explained how the building was
designed with functionality in mind and how each decision was intended to encourage
HYBE’s ideal work culture. The theme of the design was ‘nomadic office,’ summarized by
Min in the phrase “you can work and rest anywhere in HYBE.” This culture determines the
company’s priorities, management, and communication styles. If it’s a healthy one, it
should bring out the best of the people working there.
Employees are free to move around since their seats are not fixed, although they can be
reserved. To take this idea further, the offices have mobile racks on grids that allow
employees to rearrange the space and create different styles of meeting rooms according
to the needs of each project. Offices aren’t the only place where people can work at HYBE.
RECOMMENDATIONS:
Sadly, most of the employee reviews about HYBE are negative. They said that there is no
work-life balance. Althought the working time is flexible, they barely have a vacation or
free time. Since HYBE is a new company, it will need time to reconstruct its system and
make a productive plan, not only improving the production but also meeting the needs of
the employees.
Despite being a superpower entertainment, fans only know HYBE as an agency of BTS.
With what BTS has to offer, HYBE realizes its own limitation is relying too much on the
success of BTS. To “get rid of that label”, HYBE needs to increase its influence through
different business activities. But in 2023, HYBE plans to debut 8 new groups of idols. This
numbers make HYBE become a “factory” producing idols. Instead of debuting new idols,
HYBE must focus on promoting current idols and developing the HYBE Solutions and
HYBE Platforms. These divisions are in created beings and have a bright future in the age
of technology.
It’s necessary to note that no company is perfect and that establishing a healthy work
culture and maintaining it are two different hurdles to cross. However, if HYBE can keep
these values and continue innovating with functionality and employees’ needs in mind, it
should become a great workplace and a prime example for others to emulate.

6
 REFERENCES

Hà. (2022, 02 23). Mặc đại dịch, HYBE lập kỷ lục doanh thu cao nhất trong lịch sử Kpop. Retrieved from
Billboard Vietnam: https://billboardvn.vn/mac-dai-dich-hybe-lap-ky-luc-doanh-thu-cao-nhat-
trong-lich-su-kpop/

Ji, L. M. (2014, 09 04). 2AM’s Jo Kwon, Im Seulong, and Jung Jin Woon Return to JYP Entertainment.
Retrieved from Mwave:
https://web.archive.org/web/20160312112024/http://mwave.interest.me/enewsworld/en/artic
le/63193/2am-changes-agencies

LABELS, H. (2021, 03 19). HYBE: NEW BRAND PRESENTATION. Retrieved from HYBE LABELS:
https://www.youtube.com/watch?v=zbuAIAoBbO0&t=597s

Lê, H. (2021, 10 05). K-Pop: Ngành công nghiệp hái ra tiền của Hàn Quốc. Retrieved from Pháp Luật Việt
Nam: https://m.baophapluat.vn/k-pop-nganh-cong-nghiep-hai-ra-tien-cua-han-quoc-
post415789.amp

HYBE CORPORATION (in Company info., Business info., Finance Info.)