According to reports by Yonhap News, HYBE released an official statement on the same day, stating, “As soon as we became aware of our member’s misconduct and the damage it caused to the company, we promptly initiated an impartial investigation through an external law firm. After undergoing the dismissal process by the Disciplinary and Personnel Committee, we terminated the individual’s employment.”

Furthermore, HYBE has filed a criminal complaint with the police regarding the damages incurred by the company and is currently pursuing legal procedures. They clarified, “This case involves the individual’s misconduct, which violated internal rules, regulations, and employment rules. We strictly prohibit members from exploiting internal information, positions, etc., for personal gain and engaging in illegal and unfair activities.”

HYBE continued by stating, “To prevent fraudulent actions, such as leveraging connections with the company or its artists for personal gain, and to mitigate the likelihood of future incidents, we are committed to offering external guidance on fraud prevention. Additionally, we will strengthen our governance system for ethics education and fair trade for all our members, taking substantial steps to enhance our internal control systems.”

Concerning the dance trainer, Chosun Ilbo reported, “Dance Trainer A, known as the choreographer for the group BTS, faced disciplinary action and dismissal from HYBE in September on charges of fraud and embezzlement.” They added, “The individual is alleged to have misappropriated tens of millions of KRW from HYBE’s funds and is additionally accused of extorting tens of billions of KRW from composers, choreographers, and entrepreneurs, failing to return the borrowed funds. Moreover, there are allegations of forgery, including the improper use of HYBE’s name. It is believed that this individual received money under the pretense of investing in goods or utilizing songs but did not follow through on these commitments.”

Chosun Ilbo further disclosed, “The total amount embezzled by A from victims is estimated to exceed 5 billion KRW.”