Since going public until now, HYBE's stock price depends largely on BTS. That is a real problem recognized by experts and HYBE is also aware of this problem.
That is also the reason why many experts and ̾k̾o̾r̾e̾an media pointed out that HYBE hastily announced the re-signing with 7 BTS members before actually completing the contract with them. However, faced with these accusations, HYBE objected and gave their own explainations.
Below is what the HYBE representative answered to the press about announcing the re-signing with BTS "quickly" right after the shareholder meeting:
Perhaps fans still cannot forget that when BTS made a statement about temporarily suspending group activities due to the impact of m̴i̴l̴i̴t̴a̴r̴y̴ service, 2 trillion won of HYBE's market capitalization evaporated in exactly 1 year. night. Just this one event shows how important BTS is to HYBE.
Therefore, whether all 7 members of BTS will reunite or not in the future holds the survival of HYBE itself, and even the entire Kpop entertainment industry. Therefore, on the 20th of this month, when HYBE released a press release with the content "extending exclusive contracts with all 7 BTS members", it became a bright spot for the ̾k̾o̾r̾e̾an entertainment industry.
But actually, at that time, HYBE had not yet completed the contract renewal with any member of BTS. According to Biz ̾k̾o̾r̾e̾a's report on the same day, no BTS member has officially signed a new contract with HYBE, it was only announced after the members expressed their agreement.
Since then, many people believe that the reason HYBE "must" reveal the details of BTS's contract extension before they complete the signing is because they want to quell controversies and worries related to future group activities. Not only that, some people attribute HYBE's "irrational" strategy to the recent decline in entertainment stocks. The announcement of re-signing the contract with BTS aims to save the difficult situation of entertainment stocks, especially in the context that BlackPink is said to not continue to renew the contract with YG.
However, the stock price did not change significantly even after HYBE's announcement was made before SUGA became the next member to enlist. According to кσяєαn Exchange, HYBE closed at 230,500 won (-5.14%) on the 21st. The successful contract renewal with BTS is good news, but because HYBE announced it before the actual contract was signed, so people were worried that "there might be problems" in this situation. That's why investors are not in a hurry to trust HYBE stock.
In response to the allegations after making the statement, an official of HYBE gave a response to the media. He said that since this was important news and it was agreed upon by all, it should be announced sooner or later. Therefore, HYBE immediately announced this good news to fans and investors.
He said: "We haven't renewed the contract yet. Some members have joined m̴i̴l̴i̴t̴a̴r̴y̴, so we explained in press release that they will do it sequentially. Anyway, it was agreed upon, so board of directors decided on it. It was recommended to disclose main artists of about BTS. However, it is difficult to reveal specific details related to contract."
5 days after that announcement, HYBE officially completed the contract extension with BTS in writing. This firmly confirms that all 7 members will continue to work as BTS under HYBE's management after being discharged from the m̴i̴l̴i̴t̴a̴r̴y̴. Thanks to this solid news, HYBE stock has revived exactly as the leadership wished.
In yesterday's trading session, HYBE shares closed at 242,500 won, up 5.21%. A remarkably high growth rate and arguably the most positive sign in the context of a severe decline in the entertainment industry's stock value. Once again, BTS has shown outstanding influence, proving their king status!
