"Difficult to view as a violation of the law" — Ministry of Labor clears Hybe of allegations in employee overwork death controversy

On December 20, 2024, Segye Ilbo reported that the South Korean Ministry of Employment and Labor officially cleared HYBE Corporation of allegations related to an employee's death. The death was initially linked to overwork, also known as "gwarosa."

This case surfaced in October 2024 during the National Assembly audit and drew attention due to testimonies and allegations of a harsh work environment at the entertainment company.

The controversy dates to 2022, when an employee at HYBE reportedly passed away, with claims that the death stemmed from overwork during a period of aggressive company expansion. These allegations were revived on October 15, 2024, during a National Assembly audit session, where NewJeans member Hanni testified about brutal workplace conditions at the company, as per KPOPPOST.

During the October 15, 2024, audit, Progressive Party lawmaker Jeong Hye-gyeong raised additional allegations against the company. It was accused of covering up an employee's death by failing to file any report.

The lawmaker claimed that as per the reports he received, the company's employees often worked through the night and endured multiple consecutive days at the office without proper breaks, leading to severe burnout.

Meanwhile, the Ministry of Labor closed the case with the final verdict that even the employee's bereaved family doesn't believe that the company tried to "conceal" the death, as per Segye Ilbo. The ministry also said:

"It is difficult to view this as a violation of the law. In the case of the complaint, no industrial accident report was filed with the Korea Workers’ Compensation and Welfare Service, and since it was not confirmed whether it was an occupational disease, we decided that it was difficult to see it as a violation of the law."

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HYBE's defense and Ministry of Labor findings regarding the employee's death

HYBE consistently denied any intentional negligence, stating the company had followed labor laws and had introduced reforms to address employee welfare. During the investigation, the company highlighted measures such as flexible working hours and unlimited paid leave, implemented after the alleged overwork incident.

The Ministry of Labor's investigation concluded that while there had been instances of excessive workloads in the past, there was insufficient evidence to directly attribute the employee's death to overwork or company policies. The findings suggested that the circumstances were complex and not solely due to the company's working conditions.

Despite the Ministry's clearance, the entertainment company faced widespread criticism over its internal culture. The controversy also reignited debates about South Korea's grueling corporate work environments and the protections afforded to employees.

In addition, NewJeans' Hanni's testimony during the audit session shed light on broader workplace issues within HYBE and its subsidiaries. Her statement accused ADOR of fostering a toxic environment.

While the Ministry dismissed NewJeans' Hanni's claims as inapplicable to regular labor laws due to her status as a celebrity in November 2024, they contributed to public backlash against HYBE's leadership.

On November 26, 2024, the Ministry of Employment and Labor concluded there was no legal infraction in HYBE's treatment of NewJeans. The ministry highlighted that The Labor Standards Act, which forbids bullying in the workplace, could not be implemented since the NewJeans members were not regarded as employees under the law but as celebrities under contract.

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Meanwhile, HYBE's clearance by the Ministry of Labor does not fully absolve the company in the eyes of the public. The Progressive Party called for stronger enforcement of labor laws even during the National Assembly Audit held on October 15, 2024, to prevent future cases of "gwarosa" in the entertainment industry.