HYBE seems to be facing a big crisis in finding a solution to fill the gap of BTS before enlistment. The drop in HYBE stock over the past few days shows that BTS's influence is irreplaceable to them.
What is more surprising is that the huge amount of money in the stock change that is lost shows the situation more alarming than ever. In addition, this also affects the economic status of Korea and it is expected to continue after the members enlist in the army.
Most recently, according to Bloomberg, shares of HYBE recorded a share price decrease of 7.1% to 129,000 KRW (about 90.70 USD), lower than the initial public offering (IPO) price of 135,000 KRW (about 94.90 USD). This means that HYBE has just lost a sum of $10 billion, compared to the peak in November last year.
This is the first time that HYBE's shares have fallen below the IPO price since it began listing on the exchange in October 2020. After that, HYBE's stock price steadily increased until it peaked on November 18, 2021 at 419,000 KRW (approximately $295). The growth of HYBE stock is attributed to BTS's explosive activities despite the pandemic.
But until June 2022, HYBE stock began to plunge after the announcement that global group BTS announced to suspend group activities to promote solo projects of 7 members. Along with the school violence scandal of Kim Garam, a former member of the girl group Lesserafim, a series of investors withdrew their capital.
At that time, HYBE's stock fell 25%, losing a market capitalization of 2 trillion KRW (about 1.44 billion USD). By August, the value of HYBE shares increased again, reaching 15.67% thanks to the successful debut of girl group NewJeans. The growth of HYBE was further pushed up when the positive results of the opinion poll conducted by the Ministry of Defense about the application of special military service. By early September, HYBE's stock price had risen 6.76%, ending at 182,000 KRW (about $131).
But just one day later, the stock price dropped again at 8.25% after the Ministry of Defense confirmed that it would be difficult to change or the results of the poll did not affect BTS's enlistment. The issue of military exemption for BTS continues to be controversial and continues to be a key point affecting HYBE's stock price. Many investors fear that when BTS members enlist in the army, HYBE will not have any artists that can cover the group's revenue hole.
