HYBE
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Recent news — quarterly earnings releases and a major investment — had big impacts on some music companies’ stocks Thursday (Feb. 9).
Warner Music Group shares fell 4.3% to $35.09 and dropped as much as 10.5% during the day following the company’s fiscal first quarter earnings release Thursday. Warner’s revenue fell 7.8% (2.7% at constant currency) to $1.48 billion and net income fell 34% to $124 million. A relatively light release schedule, a slowdown in ad-supported revenue and a shorter quarter — the prior year period had one additional week — contributed to the decline. New CEO Robert Kyncl called it a “tough quarter” and pointed to a slate of releases in the second half of the year by Ed Sheeran, Cardi B and David Guetta.
MSG Entertainment shares ended the day up 11.7% to $59.58 and reached as high as $61.33 during the day, up 15% from the prior day’s closing price. Revenue in the quarter rose 24% to $642.2 million. The proposed spinoff is expected to be completed by the end of March and the MSG Sphere in Las Vegas is slated to open in September. Investors had other reasons to cheer, however, as MSGE announced it implemented a cost reduction program that resulted in layoffs and other non-labor savings.
In Seoul, SM Entertainment shares rose nearly 19% to 117,000 won on Friday (Feb. 10) on news that HYBE acquired a 14.8% stake to become its largest shareholder, though shares dipped to 109,800 won, up 11.5%, by mid-morning. Likewise, HYBE shares climbed as much as 10.2% to 218,500 won ($172.76) before falling to 212,500 won ($168), up 7.2% from the previous closing price.
LiveOne shares gained 2.1% to $0.97 despite climbing as high as $1.09, up 14.7% from Monday’s closing price. The company raised its guidance for full-year adjusted EBITDA from $11 million to $12 million. LiveOne’s revenue for the quarter ended Dec. 31 declined 17% to $27.3 million due to its decision not to produce “capital-intensive tentpole or pay-per-view events” until next fiscal year. That decision, along with reduced annual expenses and overhead, helped LiveOne turn adjusted EBITDA from -$4.8 million to $3 million.
The U.S. markets broadly fell on Thursday. The New York Stock Exchange dropped 0.7% and the Nasdaq fell 1%. The S&P 500 fell 0.9%. Markets in Europe fared better, however. The DAX, an index of 40 blue-chip German stocks, rose 0.7%. The FTSE 100, a measure of 100 stocks on the London Stock Exchange, rose 0.3%.
HYBE, the company behind K-pop groups BTS and TOMORROW X TOGETHER, has acquired a leading stake in competing K-pop company SM Entertainment, home to artists including NCT 127, Super M and Aespa. According to a regulatory filing posted Friday (Feb. 10) in Seoul, HYBE acquired shares in the company worth 422.8 billion won ($334.3 million), making it the company’s largest shareholder.
HYBE purchased 3.5 million shares from SM Entertainment founder Lee Soo-man, SM Entertainment’s largest shareholder. The deal gives HYBE a 14.8% stake in the publicly traded music company, which has a market capitalization worth roughly $1.8 billion. HYBE’s market capitalization is worth roughly $6.5 billion.
Lee, who is currently embroiled in a power struggle with SM Entertainment’s management, had owned roughly 18.5% of SM Entertainment’s outstanding shares, according to the company’s investor relations website. Following the sale to HYBE, he is left with roughly 869,000 shares and a 3.7% stake. Lee has a put option to sell his remaining shares one year after either HYBE’s purchase or the date of the business combination, whichever comes first, according to the filing.
Korean tech company Kakao, the owner of the music streaming service Melon, announced on Tuesday it would acquire a 9.05% stake in SM Entertainment, making it the company’s second-largest shareholder. Lee opposes Kakao’s investment, however. According to a report, Lee intends to called SM Entertainment and Kakao’s plan an “act of illegality against the commercial law and article of association” in which SM Entertainment would issue new stock and convertible bonds.
The investment in SM Entertainment is HYBE’s second major deal in as many days. On Wednesday, HYBE America announced it had purchased QC Media Holdings, the parent company of Atlanta-based hip-hop label Quality Control Music. The $300 million deal adds artists including Migos, Lil Baby, Lil Yachty and City Girls to HYBE’s roster and puts the Quality Control roster under the leadership of HYBE America CEO Scooter Braun.
South Korean music company HYBE has made a major entry into the U.S. market by acquiring Atlanta-based QC Media Holdings, the company behind hip-hop label Quality Control Music and a roster that includes Migos, Lil Baby, City Girls and Lil Yachty.
Founded in 2013 by CEO Kevin “Coach K” Lee and COO Pierre “P” Thomas, Quality Control will fall under the HYBE America umbrella and the leadership of its CEO, Scooter Braun. HYBE America encapsulates SB Projects, as well as Big Machine Label Group, which HYBE obtained through its 2021 acquisition of Braun’s Ithaca Holdings.
“Based on hip-hop, QC has been making a strong presence in the American music scene,” HYBE CEO Jiwon Park said in a statement. “With our shared vision, I have high hopes in what we can operate and achieve together.”
In HYBE, Quality Control gets a team with a history of building artists from scratch into global stars. “All of HYBE’s leaders are entrepreneurs with phenomenal combined history [of] finding talent and taking it to the next levels,” said Thomas in a statement.
“P and I are ecstatic about this partnership with Scooter and HYBE and are confident they can get us to our global ambitions we’ve had in our scope since the beginning of the company as nothing means more than our artists impacting worldwide,” Lee added. “Over many years, Scooter and I have cultivated real trust and a common way of looking at the world and culture.”
Quality Control expands Braun’s purview to a genre that has been missing from HYBE’s broad roster. SB Projects clients include Justin Bieber, Ariana Grande, Demi Lovato and Kid Laroi. Big Machine’s country-focused roster features Tim McGraw, Thomas Rhett and Rascal Flatts. HYBE has dipped its toes into hip-hop with Big Machine’s partnership with Blac Noize! Recordings, the label behind the 2022 summer anthem “F.N.F. (Let’s Go)” by Hitkidd and Glorilla.
HYBE dominates K-pop with artists such as BTS, the BTS members’ solo projects, Tomorrow X Together, Enhypen and Seventeen. In December, it launched a new Japanese imprint, Naeco, and signed Japanese singer Yurina Hirate. HYBE also has a joint venture with Universal Music Group’s Geffen Records and is developing an international girl group in the U.S. But the ambitious Korean company had a limited presence in the world’s largest music market until the 2021 Ithaca acquisition. Quality Control, Braun’s first major acquisition as HYBE America CEO, further diversifies HYBE and gives it a premiere hip-hop brand.
Quality Control’s recordings have been distributed through Universal Music Group’s Motown Records, which formed a joint venture with Quality Control in 2015 along with UMG’s Capitol Music Group. A HYBE spokesperson did not comment on the state of the joint venture following the acquisition. Quality Control’s Thomas noted that both companies have a relationship with “the Universal Music Group family of companies [that] makes this seamless,” he said in a statement.
In 2022, Motown/Quality Control’s overall market share rose to 0.97% from 0.90% in 2021. In terms of current market share — music released over the previous 18 months — Motown/Quality Control improved from 1.18% in 2021 to 1.33% in 2022. It had remained part of Capitol’s market share during that period, despite its ostensible status as a standalone entity. Capitol’s overall market share declined from 6.81% in 2021 to 6.40% in 2022 while its current share dropped from 5.64% in 2021 to 4.97% in 2022.
In 2022, Lil Baby had 2.97 million equivalent albums – a metric that combines sales and streams – and 4.3 billion on-demand streams in the U.S. in 2022, according to Luminate. His track “In a Minute” peaked at No. 14 on the Hot 100 in April and ranked No. 43 on the year-end Hot 100 Songs chart. Despite not releasing a new album in 2022, Migos had 2.9 million album equivalent units and 4.3 billion on-demand streams last year. Lil Yachty had 424,000 album equivalent units and 637.8 million on-demand streams. City Girls had 251,000 album equivalent units and 361.6 million on-demand streams.
The acquisition also broadens HYBE’s tech portfolio. HYBE built its own social media platform, Weverse, to create a direct connection with its K-pop groups’ massive fan bases. It also owns a controlling stake in AI audio startup Supertone. Last year, Quality Control’s Solid Foundation Management, the company’s artist management arm, invested an undisclosed sum in music streaming platform SoundCloud. “This partnership is a vital part of our plan to innovate the entertainment industry through a diversified portfolio and innovative technologies,” said Bang Si-Hyuk, HYBE’s chairman, in a statement. “We will work together to continue adding to the global depth of hip-hop.”
Additional reporting by Dan Rys.
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Scooter Braun has taken the title of CEO, HYBE America, the U.S. division of South Korean music company HYBE.
A HYBE representative confirmed to Billboard that Braun is now the sole CEO of HYBE America. Until recently, Braun shared the co-CEO title with veteran HYBE executive Lenzo Yoon. (Braun and Yoon appeared at No. 18 on Billboard’s 2022 Power List along with HYBE chairman Bang Si-yuk.) The HYBE representative declined to comment on Yoon’s current title or any changes to either executive’s role.
Braun joined the company through HYBE’s $1.05 billion acquisition of his Ithaca Holdings in 2021. Ithaca encompasses SB Projects, the management firm behind Justin Bieber and Ariana Grande, as well as the country music-focused Big Machine Music Group. HYBE already had a U.S. presence — the acquisition was made by its state-side subsidiary, HYBE America — but Ithaca gave it the infrastructure and the executive, Braun, to build its presence in the U.S. Today, HYBE America has offices in Los Angeles, New York and Nashville. Braun’s team includes Allison Kaye, president of music, HYBE America and SB Projects; Jennifer McDaniels, president of management, HYBE America and SB Projects; and Jules Ferree, president of brands & ventures, HYBE America and SB Projects.
Yoon has spearheaded HYBE’s efforts to showcase K-pop artists based in the U.S. In a 2021 interview, he told Billboard that the U.S. provided an opportunity to implement the company’s “winning formula” that helped turn BTS into global superstars. HYBE has a joint venture with Universal Music Group’s Geffen Records to search for talent, assemble a girl group and release music. “We will find the most effective way to be successful in this project based on the know-how of the two companies,” said Yoon at the time.
Yoon also said Ithica and HYBE would help one another, but suggested Braun would carve out a distinct role in the organization. “We intend to cooperate in the most efficient way without overlapping in terms of structure,” he said.
Even with BTS on hiatus, the band’s label and agency HYBE grew revenues 445.5 billion KRW ($308.7 at the Sept. 30 exchange rate) from July to September — up 30.6% from the year-prior period, according to the company’s third-quarter earnings report released Thursday. But compared to second-quarter revenue of 512.2 billion KRW ($354.9 million), revenue was down 13%.
The “artist direct-involvement” segments of the business showed mixed results in the quarter. Music sales of 129.2 billion KRW ($89.5 million) were 0.4% year-over-year and 38.7% lower than the previous quarter. Concert revenue of 47.2 billion KRW ($32.7 million) was a vast improvement over zero in the third quarter of 2021 but lower than the first and second quarters. Revenues from ads, appearances and management fell 11.7% year-over-year to 29.8 billion KRW ($20.2 million).
HYBE saw better performance from its “artist indirect-involvement” segments that are less dependent on the timing of music releases and tour dates. Merchandising and licensing revenue grew 49.5% year-over-year to 144.7 billion KRW ($100.3 million). Contents revenue climbed 22.9% to 107.2 billion KRW ($74.3 million). And fan club revenue improved 27.5% to 17.3 billion KRW ($12 million).
Though the first nine months of the year, HYBE’s revenue improved 55.7% year-over-year to 1.24 trillion KRW ($859.2 million) and its operating profit increased 59.% to 185.9 billion KRW ($128.8 million). Operating margin improved from 14.6% to 15%.
Despite the impressive growth, HYBE is facing a dilemma. The company is without its biggest artist, BTS, after members went on hiatus earlier this year and will soon face mandatory military service in Korea. Losing its cash cow — until “around 2025,” according to an Oct. 17 letter to shareholders from CEO Park Ji-won — leaves Hybe with a tricky balancing act: In the absence of BTS new music and tours, the company must make up the difference with individual members’ solo projects and a slate of successful and up-and-coming artists. With only a retrospective album, Proof, and no concert dates since April, BTS will still account for 60-65% of HYBE’s 2023 revenue, Park said during the earnings call. The remaining 35-40% of revenue will come from a growing roster of young artists and Ithaca Holdings, which HYBE acquired in 2021.
In recent years, HYBE has diversified to reduce its reliance on BTS and build a more stable portfolio of companies and artists. Through its nine record labels in Korea, Japan and the U.S., HYBE has built a diversified roster that “helps us avoid a risk of concentrating on a certain country, a certain genre, and allows us to flexibly respond to the changing external situations and trends, thereby reducing the overall business risk,” said CFO Lee Kyung-Joon.
Ithica Holdings added both recorded music catalog (through Big Machine Label Group) and artist management clients (through SB Projects). Its founder, Scooter Braun, is now co-CEO of HYBE America. When asked by an analyst what synergies Ithaca provides more than a year after the merger, Park pointed to the newfound ease and efficiency of launching projects in the U.S. under Braun and co-CEO Lenzo Yoon. Also, Ithaca’s U.S. artists will join HYBE’s WeVerse social media platform in 2023, Park added, and HYBE is pursuing opportunities for the businesses of Ithaca artists Justin Bieber (Drew House) and Ariana Grande (R.E.M. Beauty) in Asia.
In Korea, HYBE’s roster includes such up-and-coming artists as Le Sserafim, released through its Source Music imprint, whose first two albums have surpassed a combined 1 million units sold. NewJeans, released through HYBE’s ADOR imprint, has cumulative sales of 620,000 of its debut, self-titled EP released in August. Outside of Korea, HYBE is taking its model for discovering and developing new artists to the world’s two largest music markets. In Japan, HYBE Labels Japan is prepping the December launch of &Team, a nine-person, multinational boy band. In the U.S., HYBE has a joint venture with Universal Music Group’s Geffen Records and is developing a global girl group.
Hybe’s plan for global growth goes beyond its growing artist roster. A broad strategy termed by Park as “expansion through cooperation across boundaries” includes mergers and acquisitions, joint ventures, equity investments and partnerships. “In order to expand the multi-label strategy, we’re considering various partnerships and investments with labels, catalog companies and talent management companies in overseas markets such as the U.S. and Japan, thereby strengthening our music I.P. portfolio,” Park said. “Through this approach, we except that greater synergies will be created with our superior solutions capability on concerts, merchandising and content to deliver greater results.”
But in the short term, HYBE doesn’t have a quick solution for replacing BTS, and Park warned that declining BTS revenue — namely lost concert revenue — will put pressure on HYBE’s margins in 2023. That should change as groups such as Seventeen and Tomorrow X Together gain popularity and perform in larger venues. Compared to BTS, those artists’ margins are “not very different from the margin of BTS — other than concert revenue,” he said. “Therefore, as these groups continue to grow, I believe that margin will improve accordingly…starting from 2024.”
With HYBE’s share price down 64.9% year to date, mostly due to BTS’s hiatus, the company is considering additional ways to improve shareholder return, including share buybacks and dividends. Park said the company will reveal more about those plans in early 2023.
Universal Music Group, Hipgnosis Songs Fund and other music stocks got a much-needed boost on Tuesday (Oct. 25) following news of Apple Music’s price hike, as investors bet it would trigger a wave of streaming subscription cost increases.
Universal Music Group’s stock closed 11.6% higher, Hipgnosis Songs Fund Ltd ended up 7.8% and Korean music companies SM Entertainment and HYBE finished the trading day 4.8% and 4.4% higher, respectfully, on Tuesday. On Monday, Apple announced that it was raising the standard U.S. and U.K. individual plan price to $10.99 from $9.99.
This 10% price hike — Apple’s first — comes amid high inflation and a darkening economic environment in many global markets. If Apple can raise prices at a time like this, that is a sign the music industry can charge more without turning off consumers, Wall Street analysts said.
“We see this as a further signal of the stickiness of music streaming subscriptions even in a weaker macro environment and believe the major markets will be able to absorb higher prices without leading to meaningfully higher churn,” Lisa Yang, Goldman Sachs’s head of European media & internet technology equity research, wrote in a note to investors on Tuesday.
“We believe that other major DSPs will likely follow suit with similar price increases in the near future, implying further potential upside to our music industry forecasts.”
Competitors Spotify and Amazon Music have already raised prices in some markets. Amazon Music raised the price of its unlimited individual plan for Prime members to $8.99 from $7.99 earlier this year.
Spotify, which will report earnings later Tuesday, raised the cost of its individual plans in the Nordics in 2021, although its standard plan for U.S. subscribers remains at $9.99.
“Despite positive management commentary around churn (with regards to recent price increases on certain plans/regions) as well as management’s views on pricing power over the long term, Spotify has highlighted the broader macro environment as a key consideration in terms of implementing price increases in the near term,” Yang wrote.
Apple’s price increase could also have positive impacts on the majors because companies like UMG and Warner Music Group typically get 65% of music-related revenues from streaming companies with a “high incremental margin,” Goldman estimates.
Music stocks have suffered in 2022 as the major U.S. market indices have fallen around 20% so far this year.
UMG’s share price of 21.10 EUR ($21.01 US) is down nearly 14% year to date, Hipngosis Songs Fund Ltd traded at 91.06 penny sterling ($1.03 US) and is down 28% so far this year. Meanwhile, Warner Music Group’s stock traded at $27.16 US, off almost 37% year to date.
For months, South Korean politicians have been scrambling to find a solution to the forced breakup of BTS, the biggest cultural export their country has known over the last several decades.
On Monday (Oct. 17), the boy band’s label Big Hit Music, a subsidiary of HYBE, appeared to put an end to the handwringing, saying that each of the BTS members would, in fact, serve their mandatory military service. That means, before long — Jin turns 30 in December — the group will not be able to perform with its full seven-member lineup until 2025.
While the timing will vary for the members — Jin, RM, J-Hope, Suga, Jimin, V and Jungkook — based on their age, the departures will create yet another challenge for Seoul-based HYBE. The company, which went public on the South Korean Stock Exchange in October of 2020, has been working to diversify its roster and silence financial analysts who said the company had the look of a one-hit wonder with BTS, the act that has landed six No. 1 songs on the Billboard Hot 100.
HYBE had already been dealing with the stress put on the company by the act’s joint announcement in June that it was taking an undetermined break from group activities to pursue solo projects. But no amount of lobbying by politicians or HYBE itself has helped BTS avoid the responsibilities that all able-bodied South Korean males from 18 to 28 have to serve at least 18 months in the military, though the length of service may vary. In December of 2020, the South Korean National Assembly passed the so-called “BTS law” to allow K-pop entertainers to postpone required service until the age of 30 with a recommendation from the culture minister.
For now, the market seems to have priced in the reality that either through military service or their own desire to work on their solo careers, this version of BTS would not be able to stay together for much longer.
HYBE’s stock, traded on South Korea’s stock exchange, fell 2.54% to 115,000 won ($80.40) on Monday, with other K-pop companies’ stocks staying within 1% of their Friday closing price.
Mandatory military service issue has been a divisive issue in South Korea in recent years as K-pop’s popularity has grown worldwide. While many, including some lawmakers, say the musicians’ contribution to the country’s global recognition should qualify them for an exemption, others that include the defense ministry have opposed the move.
In a country that has superpower neighbors such as China and Russia, as well as a saber-rattling North Korea, many South Koreans believe that the military requirement serves as a social equalizer. And attempts to avoid mandatory service have suspended or derailed the careers of several entertainers and other public figures. Boy bands such as 2 PM and Bigbang have significantly limited their public appearances or paused group activities after its members entered the military.
Jin, the group’s eldest member, turns 30 in December and is expected to start his military service by the end of the year if no sudden amendments are made to the country’s compulsory draft legislation. Jungkook, the youngest member, is 25 years old.
For HYBE, the big question remains: Has the company done enough to diversify its artist roster to account for a potential drop in revenues from a less-active BTS. Since acquiring Scooter Braun’s Ithaca Holdings in April 2021, the share of HYBE’s revenue BTS accounts for, which was 85% in 2020, has fallen to about 60% in 2021, according to one analyst estimate.
Bernie Cho, owner of Seoul-based DFSB Kollective artists and label services agency, says HYBE “has silenced naysayers by rolling out a deep K-pop artists roster that goes beyond BTS,” including new acts Seventeen, TXT and ENHYPEN. Combined, the three groups, which debuted in 2021, accounted for 7.7 million album unit sales — more than half of HYBE’s 2021 total K-pop album sales worldwide, according to company filings. And this year, two girl bands – Le Sserafim and NewJeans – have joined their male labelmates as “some of the best-selling artists of the year,” Cho says.
Nevertheless, earlier this month, NH Investment & Securities, one of South Korea’s largest securities firms, lowered its target stock price for HYBE by 19% to 250,000 won ($177) citing a “delay in growth even after acquiring Ithaca Holdings.”
BTS fuels tremendous merchandise sales in Korea, along with physical CDs and is essentially the flagship act for a growing global K-pop industry. Attention around BTS helps generate some $3.54 billion in visits from foreigners and exports of consumer goods like clothes, makeup and food, according to the Hyundai Research Institute. One Korean politician, Sung-Il-jong of the ruling People Power Party, has estimated that a No. 1 song on the Billboard charts can create a halo effect that generates an economic boom of $1.38 billion for the South Korean economy.
Twelve full months of revenue from HYBE America — which houses artist management and Big Machine Label Group, which manages top international acts like Justin Bieber — are expected to further strengthen HYBE’s income statement.
The company also will try to cobble together BTS-like sales and streams from BTS solo projects. In July, J-Hope was the first to release solo material with the album Jack in the Box, which featured singles “MORE” and “Arson.”
The members, for their part, seem to want to try to stay together as BTS. At a special free concert on Saturday in Busan, South Korea, where 55,000 fans attended, Jin teased a solo project as the members pledged to carry on group activities well into their careers. “We will continue for 30 years,” Jimin said, “and even perform when we are 70 years old.”
But it was J-Hope, the first to open up about the group’s future, who seemed to signal that military service was looming — and that the group could be entering a challenging period. “I think we’re in a phase where we need your trust,” he said.
Additional reporting by Jeyup S. Kwaaak
SEOUL — South Korea’s Intellectual Property Office has thrown up a roadblock to HYBE’s efforts to trademark the iconic “I purple you” term BTS member V created during a fan meeting six years ago.
The KIPO says that HYBE’s trademark application for V’s “I purple you (Borahae) cannot be registered as its application has been filed against the principle of good faith,” according to a notice sent to the company.
The patent and trademark office essentially says that HYBE, the parent company of BTS label Big Hit, is not allowed to trademark the phrase that V uttered, even though he is signed to HYBE, because he used it first.
V, real name Kim Tae-hyung, first created the phrase “Borahae” during a Nov. 13, 2016 fan meeting, when he said, “Borahae, like the last color of the rainbow purple (bora), means we will to the end trust each other and love each other for a long time,” the KIPO said.
“I purple you” has become synonymous with BTS. So much so that McDonald’s, in its collaboration with the group, has used the term on the side of its purple-packaged BTS Meals, which have become yet another collectible for fans.
In 2018, after BTS launched its “LOVE MYSELF” campaign, Henrietta H. Fore, the executive director of UNICEF, used the term in a special video thanking the group for its work in helping raise money for a campaign to end violence against children. “We here at UNICEF purple you,” she said at the end of her speech.
In explaining its refusal to allow HYBE to secure a trademark, however, the KIPO sided with V as the creator: “We accept that the applicant has filed a trademark that is similar to or the same as a trademark used by a different person that has a contractual or working relationship such as partnership or employment.”
It cited article 34, paragraph 1, subparagraph 20 in Korean trademark law.
V, who is known to be among the quieter members of BTS, has been active on his Instagram since the notice to HYBE became public knowledge, but hasn’t commented on the case.
An official at the KIPO, who requested anonymity because they aren’t authorized to comment on an ongoing case, tells Billboard that its decision is not final. HYBE has been given two months to file an addendum that strengthens the company’s claim, and that period could be extended further, without an explicit limit, the official says. “Citation of the subparagraph 20 is very rare, and as far as I know there are no precedents involving BTS,” the person says.
The case follows an earlier unsuccessful application by LALALEES, a Korean cosmetics company specializing in nails, to trademark the “Borahae” term in 2020 under the classification of soaps, fragrances, essential oils, cosmetics, hair products, polishes, and other cleaning agents. After the rejection caused an uproar among fans, the cosmetics company issued an apology.
K-pop companies are known for trademarking names and phrases associated with their artists. When boybands leave their management companies they often cannot perform under their previous name because the companies have registered and own the rights to the boyband’s name.
In 2015, the idol group Shinhwa reclaimed the rights to their name after a 12-year battle with agency ShinCom Entertainment and June Media (formerly known as Open World Entertainment). In that case, Shinhwa’s original agency, SM Entertainment, gave the rights to “Shinhwa” to a new agency, Good Entertainment, and then trademarked the name in 2005, before handing trademark rights over to June Media completely, according to according to K-pop publication Soompi.
And in 2020 a Korean court stripped SM Entertainment director Kim Kyung Wook of trademark rights to the name and logo of first-generation boyband H.O.T. (Highfive of Teenagers), which he originally cast and produced in 1996. While planning a reunion tour, the group in 2018 was forced to remove its name and logo from promotional materials after failing to come to an agreement with Kim over trademark rights, Soompi reported.