Yesterday, ARMYs and some Kpop fans were probably in quite a mess after BTS announced a new chapter in their activities. The fact that the members focused on solo plans surprised many people.
However, not only affects the psychology of fans, this news also affects the volatility of the economy and the market. The value of HYBE's shares fell after this news by a significant amount.
BTS is said to make up the bulk of HYBE's revenue and influence the company's stock value. Therefore, any fluctuations related to BTS can easily affect the management company's economy.
This morning in the trading session, the stock value of HYBE witnessed a 25% drop - a deep drop that surprised many people. This has many investors panicking.
This is believed to come from the news that BTS will be taking a hiatus from group activities for a while. Even so, HYBE has confirmed that BTS will not be suspending group activities, but that they will both work as a group and focus on individual projects.
However, it still can't make the situation better given the value of HYBE's stock. The value of the stock dropped during after-hours trading as the announcment was made during the evening of June 14 KST, after normal trading hours closed, which is why the opening price is listed as ₩168,000 KRW (about $130 USD) despite the previous day’s closing price of ₩193,000 KRW (about $150 USD).
The sudden drop of HYBE’s stock means that the company’s overall valuation has dropped over 2 trillion won (₩2.12 trillion KRW [$1,644,656,529 USD] to be exact). According to financiers, the KOSPI market is currently unstable, but such a sharp drop is not unusual.
Others believe that the value of stocks will slowly recover. But many investors will remain hesitant about the future of the company as they don't know when a second BTS will be available.
Meanwhile, some assume that the solo is related to the military enlistment issue, the stock value as well as the decrease in sales of HYBE related to BTS is huge. Assuming the most conservative scenario where all BTS will enlist in early 2023, the drop in BTS-related sales in 2023 is estimated to be around 750 billion KRW.
