HYBE Criticised For Enforcing Harsh Clauses In Employee Contracts

Legal experts call the terms of the agreement a violation of personal freedom.

HYBE, the mega corporation that is home to some of the most popular K-pop groups like BTS, SEVENTEEN and Enhyhen, has been under a lot of hot water recently.  The company recently got embroiled in tax evasion and insider trading charges, and also a legal dispute with ADOR’s former CEO, Min Hee Jin. Now, a concerning report about how the company puts its employees under unfair shackles has also emerged. Read on to find out more.

Why HYBE Is Being Accused Of Imposing Unfair Contracts On Its Employees

HYBE was once known as the top choice for people to work at in the entertainment industry; however, it seems like that is not the case anymore. According to a report by Kyunghyang Shinmun, concerns have emerged that HYBE has been putting unfair restraints on employees who leave the company. Reports confirm that HYBE has required many employees who recently resigned from any of its subsidiaries to sign confidentiality agreements.

Being asked to sign a confidentiality agreement in itself is not a concern; many top agencies and companies to do it. However, it is the clause of the agreements that has made people raise their eyebrows. The non-compete clause was the most controversial part of the agreement. The clause states that the employees:

-May not be employed by or collaborate with companies in the same or similar industry within one year after resignation.

-May not establish or operate companies in the same or similar industry within one year after resignation.

This clause bars former HYBE workers from working at rival entertainment companies for a year after they leave HYBE. The signing of these agreements was overseen by Kim Joo Young, HYBE’s Chief Human Resources Officer and the current CEO of ADOR.

Legal experts point out how such non-compete agreements are not usually signed by ordinary employees. They are not offered special benefits,  and it may infringe on workers’ freedom to choose their profession. Such agreements are only used in highly technical industries to prevent leakage of highly sensitive data.

Also Read: Authorities Initiate Surprise Raid At HYBE Headquarters Amid Stock Manipulation Allegations

In addition to this excessively restrictive agreement, HYBE has also set the preservation period for NDAs as permanent. Legal experts point out how this is a violation of the Personal Information Protection Act.

Also Read: HYBE Under Fire For Allegedly Stealing From NewJeans’ Brand Deal

First Published: July 31, 2025 11:36 AM