SM Entertainment recently released its financial results for the third quarter of 2024, where the company posted impressive numbers despite an overall decline in performance compared to the previous year. Most notably, the company reported a net profit of approximately KRW 16 billion (approximately USD 11.6 million), which is ten times HYBE's net profit for the same period, which was KRW 1.4 billion (approximately USD 1 million).

The financial report revealed that while album sales and revenue from major subsidiaries declined, leading to a 9% drop in revenue and a 73.6% drop in operating profits from the previous year, the company still managed to increase its concert revenue and expand its in-house concert operations.

Additionally, SM Entertainment is planning an active end of the year with multiple schedules for its artists, and is preparing to launch a new girl group in the first quarter of 2025, the first since aespa's debut five years ago.

Once the results were released, reactions were swift on social media and online forums. One user shared an IZE article title highlighting SM's performance on an online community, titled "SM Announces Q3 Performance... Net Profit 10 Times HYBE's."

Many netizens expressed skepticism and concern, with some suggesting that HYBE might need a rigorous tax audit to clarify these surprisingly low numbers. Comments such as “This needs a thorough tax audit, starting with reviewing the use of corporate cards” and “This is not a joke, they really need to be audited” were frequently shared.

The comparison has sparked heated debate, with accusations of accounting manipulation and embezzlement, reinforcing calls for greater transparency in financial reporting by major K-pop companies.