HYBE's lawsuit over 'manipulation' and 'mentally ill' comments dismissed by prosecutors citing freedom of expression & personal views

On July 21, 2025, Financial News reported that South Korea’s prosecution decided not to pursue legal charges in a case filed by HYBE against a netizen over critical online comments. For context, the label had previously filed a complaint for defamation and insult. The label claimed damage from remarks posted under a Naver News article.

The comments include the phrases “media manipulation,” and “mentally ill." The music giant also claimed that there were comparisons of the label to the extremist group, Hamas.

The entertainment agency said the comments were both defamatory and offensive.

This is especially because they mentioned its acquisition of a U.S.-based PR firm, The Agency Group. According to the Financial News, the individual wrote a comment,

"Oh, and HYBE acquired an American media manipulation company last time. It seems like HYBE has a collective mental illness. Did they get juicy lighting from Bang Si-hyuk? They're just joking around like Hamas."

However, the Bucheon Branch of the Incheon District Prosecutors' Office concluded there was no basis to indict the individual.

Prosecutors determined that the term “manipulation” could not be considered a false statement, particularly since The Agency Group is known for favorable editing and image control for celebrities.

The statements were interpreted as personal opinions rather than false factual claims. They further explained that although the comments used strong and inappropriate language, it could still fall under the scope of freedom of expression.

The prosecutors stated,

"Although the comments used rude expressions such as 'mentally ill' and 'Hamas', the comments in question can be seen as expressing personal opinions. the related issue has been reported on multiple times and is of public interest."

They continued,

"the fact that the crime of insult should be more strictly considered when it comes to public figures or issues makes it difficult to see that the content of the post alone lowered the social evaluation of Hive's personal value. There is no evidence to support this."

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More Details on the case and HYBE's ongoing legal troubles

According to Financial News, the incident began in September last year when a user commented online that HYBE had acquired a “media manipulation company” in the U.S. In another post, the commenter described the label as a “mentally ill group."

The person also accused Bang Si-hyuk, the chairman, of gaslighting the company while comparing its behavior to that of Hamas.

HYBE argued that these statements distorted facts, tarnished its reputation, and crossed the line into defamation and insult.

Yet prosecutors ruled otherwise. They emphasized that even harsh or sarcastic criticism can be protected under freedom of speech with matters of public interest.

Referring to multiple prior rulings, the prosecution highlighted that metaphor, exaggeration, or satire in political or ideological discussions, particularly in internet spaces, should be given legal tolerance.

In a separate but equally serious development, The Korea Herald recently reported that South Korean financial regulators have referred HYBE chairman Bang Si-hyuk to the prosecution for alleged unfair trading practices.

Authorities claim he misled investors during the company’s IPO and profited nearly 400 billion won. The referral marks a rare and stern step under the Lee Jae-myung administration against a major entertainment figure.

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HYBE responded that it respects the decision and plans to fully cooperate with investigators while working to restore trust in the market.

Edited by Prem Deshpande