According to financial media outlet reports on June 15, HYBE Label's share prices have dropped by 25.65% from the previous day, at 143,500 KRW. This is said to stem from the members preparing for their solo projects, and investors think it is related to BTS preparing for military enlistment.
With BTS enlisting in the army and group activities dwindling, the risk of a decrease in revenue worries investors because BTS has a huge impact on HYBE's revenue as well as the economy.
Read more details about this: HYBE Stock Value Drops 25% After The News Of BTS’s Next Chapter Of Activities Was Released
BTS revealed that they would be kicking off "season 2" of their careers with a stronger focus on solo promotions, temporarily putting a halt to their group activities. Although later, HYBE confirms the information that the members would not stop group activities but change into a new form of activity, their share prices still drop hard.
One financial analyst commented, "HYBE Labels's business value has hit an all-time low. The uncertainty of BTS's military enlistment plans is having a massive impact on share prices." Another financial analyst added on, "Based on BTS's temporary hiatus from group promotions, and no guarantee for a world tour projected in 2022, HYBE Labels should prepare for a noticeable decline in operating profits."
Meanwhile, financial media outlet reporters projected that an announcement video regarding BTS's plans for mandatory military enlistment will be released some time by mid-next week. Whether BTS is exempt from the obligation or not will have an answer soon. Because this has lasted for many years and caused many negative problems as well as unnecessary controversies for the members.
Finally, BTS member j-hope is projected to release his 1st official solo album some time in mid-July, the first of his group to launch full-fledged solo promotions. Read more: j-hope Will Begin BTS's New Chapter, His Solo Album Will Be Released In The Middle Of The Nex Month
j-hope's solo debut will start a new stage of BTS' activities. Many are also looking forward to j-hope's entry into the music market as a solo artist. This is a happy and exciting news that many people think that it can help to rise the HYBE stock price!
