The issue of HYBE's stock price continuing to decline despite announcing the news of continuing to extend the contract with BTS members seemed to be resolved on September 25. After кσяєαn media revealed information that on this day, all members of BTS completed the contract signing, causing HYBE's stock value to revive.
Not only that, compared to the general situation of the entertainment industry, HYBE's stock value is also considered to be more stable thanks to BTS's insurance. That shows how important BTS plays to their management company and experts also a̾s̾sess the value of BTS re-signing the contract, not only greatly affecting HYBE but also the entire industry.
Below is information surrounding the news that BTS officially completed the contract renewal with HYBE on September 25:
On the 20th of this month, HYBE released a press with content that: “We have completed the board of directors' resolution to renew the exclusive contracts of the seven members of BTS, artists under BigHit Music. With all members signing a second contract renewal, the group will be able to continue even after 2025 when they complete their military service". But, actually at that time, вιg нιт Music had not yet completed the contract extension with any members in BTS. According to Biz кσяєα's report, on the 20th, no BTS member had officially signed a new contract with HYBE, but the company's announcement was only a decision at that time.
Some people believe that the reason HYBE "necessarily" revealed the details of BTS's contract renewal without actually signing the contract is because of controversies and worries related to the future of BTS's group activities. At the time BTS announced their suspension of activities and enlistment, HYBE had evaporated about 2 trillion won in market capitalization. Although the difficult period later pa̾s̾sed and BTS secured a period of stable solo activities, concerns continued. But this further reinforces the perception that ‘HYBE = BTS’.
Not only that, some people believe that HYBE's "irrational" strategy is due to the recent decline in entertainment stocks. The announcement of re-signing the contract with BTS is aimed at salvaging 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.
According to the кσяєαn Exchange, HYBE closed at 230,500 won (-5.14%) on the 21st. The successful contract renewal with BTS is good news, but since HYBE announced before the contract was actually signed so people are worried that “there might be problems” in this situation. That's why investors are not in a hurry to trust HYBE shares.
However, on the 25th, 5 days after the announcement, HYBE officially announced that they had completed their contract extension with BTS in writing. This firmly confirms that all 7 members will continue to work as BTS under the management of HYBE after being discharged from the m̴i̴l̴i̴t̴a̴r̴y̴.
Thanks to the certainty of this news, HYBE's shares have revived as the leadership wished. Today, 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 shows their remarkable impact, proving their status as kings!
In this situation, experts have evaluated the overall role of BTS, not only for HYBE but also for the кσяєαn entertainment industry in general. Looking at reality, so far, besides BTS, other artists of HYBE or the new generation of Kpop have not achieved any significant results in the global market.
Cultural critic Ha Jae-geun also said: “BTS is a very important a̾s̾set of HYBE. Sending this message to the market will cause investors to continue with the company without wavering. It plays a big role in strengthening HYBE's position in the market, without damaging public trust in the company." Besides, experts also believe that the news of BTS officially signing a contract with HYBE also ensures the brilliant future of Kpop!
