HYBE Are Criticized By Their Investors Because Of The News BTS Will Enlist Soon

The problem of BTS's future activities not only affects the group and ARMYs, but it even shakes the economy. Today, according to Korean media, many investors of HYBE have had a negative reaction to the company due to concerns about the value of their investment being reduced.

Specifically, this issue related to the members' solo activities and the issue of enlistment shortly made many people fear that the value of HYBE's stock would decrease!

Big Hit once recorded a closing price of 245,420 won on the first day of listing, trading at a higher price than the three major Korean entertainment companies (SM, JYP, and YG). The market capitalization on the first day of listing also reached 6,786.2 trillion KRW, higher than the market capitalization of all three veteran companies combined.

This is a prime example of successful participation in the KOSPI market under high interest even before listing. But this is completely based on the strength of being the representative company of the world-famous pop star BTS. At that time, BTS accounted for 88% of the company's total sales

However, that doesn't mean there aren't any concerns about Big Hit right now. HYBE is a company whose stock price is affected by BTS's activities. By the end of the first quarter of this year, the number of minority shareholders investing alone reached 156,658 people and they were attracted by the huge economic value that BTS brings.

However, since the news of BTS entering the 10th year with the focus on promoting solo activities, HYBE has witnessed an unprecedented decrease in stock value. HYBE's share price fell 24%, evaporating about 2 trillion KRW. Shareholders were outraged by the sudden drop in stock prices.

Previously, Chairman Bang Si-hyuk committed that the company would do its best to grow and contribute to society to enhance the value of each shareholder as well as investors. However, the damage this time makes investors gradually doubt this promise.
 
Experts say that BTS currently accounts for more than 70% of HYBE's total revenue. They stated that even other groups under HYBE's subsidiary or directly affiliated groups such as TXT, LE SSERAFIM, and ENHYPEN could not equal the value of BTS.

Therefore, if BTS enlists in the army shortly or the group activities are interrupted, it will cause HYBE's revenue to drop seriously. Along with that, the value of HYBE's stock will lose most of its value. No one else, investors will be directly affected and they are feeling insecure because HYBE has no other backup plan.