Bang Si Hyuk of HYBE is facing major controversy. The Chairman has been indicted for alleged violations of the Capital Markets Act, including unfair trading practices. This scandal comes just as fans anticipated BTS’s return from military service, casting a shadow over the company’s recent momentum.
On July 22 KST, HYBE’s stock closed at ₩272,500, down 1.27% from yesterday. The stock has plummeted nearly 16% since reaching an intraday high of ₩323,000 three weeks ago. The drop started on July 9, following news of financial authorities referring Bang Si Hyuk’s case to prosecutors.
In the wake of this turmoil, competitors like SM Entertainment, JYP Entertainment, and YG Entertainment are thriving. These companies benefit from the easing of China’s “Korean Wave ban” under President Lee Jae Myung, alongside strong merchandising revenue. YG, specifically, has seen a staggering 92% increase since the start of the year, closing at ₩87,800.
To combat this impact, HYBE is ramping up its rookie group development. With BTS set to reunite as a full group, the situation is complicated by SEVENTEEN’s military enlistments and tensions with NewJeans and ADOR.
On July 4, HYBE launched the HYBE Music Group Audition, allowing applicants to audition across several labels including BigHit Music and Pledis Entertainment. A new boy group from BigHit Music will debut next month—the first since TOMORROW X TOGETHER in 2019.
Analysts are cautious but optimistic. KB Securities researcher Lee Sun Hwa stated:
“HYBE has multiple debut milestones. Following the debut of boy group AOEN, BigHit will launch another group in Q3 positioned as BTS’s successor. In addition, HYBE plans to debut localized artists in North and Latin America by 2026.”
However, she warned:
“Before BTS’s full-group activities ramp up again, the debut costs of new groups could weigh on HYBE’s profit leverage in the short term.”
As the situation unfolds, investors and fans alike are watching closely.
Watch HYBE’s latest updates here.
Twitter post:
HYBE’s stock crash trending now!
