When it comes to HYBE, it has been very open about its company and the public nature of its business. Recently, the company released information on the state of their stocks following the update on BTS‘s enlistment.
On October 17, it was announced that Jin had canceled his enlistment delay following years of the government debating the topic of BTS enlisting. Many ARMYs and media praised the idol for taking matters into his own hands. Yet, although many worried about the state of HYBE after the announcement, as many believe BTS brings a huge amount of money and exposure to the company and South Korea, it seems as if the news has had an unexpected impact on the stocks.
On the morning of October 18, many were surprised to see that HYBE’s shares had increased and were around 4.8% higher than the previous day, trading at ₩121,000 KRW (about $84.20 USD).
Although the increase might not seem like a lot, it is significant because of the past information from the company. When BTS first announced the “Next Chapter” of their careers, it was shocking to see HYBE’s stocks decrease by 25%. It means HYBE lost more than 2,12 trillion KRW in one night.
Similarly, K-Pop companies have seen a fall in their stocks in recent months according to the decrease of stock market. Even on October 18, while JYP has seen a fall, the rise in stocks for SM Entertainment and YG is minor compared to that of HYBE.
Yet, for many, the reason that HYBE has been able to announce a steady increase in their stocks following the announcement comes from the detail following the news.
YG Entertaiment Stock Price
Unlike the initial fall following the group’s Festa broadcast, HYBE released a number of plans going forward regarding the statement. Not only did they confirm that the group would come back together as a group in 2025, but they also announced plans for upcoming groups and their commitment to both the Korean and international groups.
This for shareholders and investors in HYBE is the safest solution to end the series of days of uncertainty about BTS' future. Plus, it only took 2 years for BTS to come back and make history a second time, so investors are very confident in this.
At first, many believed it could also have been impacted by LE SSERAFIM‘s comeback, yet several Korean outlets believe the driving force is BTS’s announcement. Yet, despite the plans, even ARMYs were surprised by the news of the rising stock:
- Hmm the stock market is still entertaining. Hybe stock though
- Bts contributes approx 3.5 billion won to tourism and hybe’s stock dropped by 28% when the initial hiatus was announced in June and there’s a reason why the government was dangling the idea of enlistment exemption over their heads but never saying whether or not BTS was
- It's mostly HYBE ensuring their stock price don't spiral more because of uncertainty like after Festa. BTS is the most significant contributor to their income. So they have to reassure us and more so, investors that the boys will be back soon. Other groups impact are not similar.
- Seokjin's power is something else when it comes to making Hybe stock rise
- Now this is really interesting! So they liked the outlined plan. And quite possibly the positive reaction from our side helped ?
- guessing the firmish date helps ?
- I think lay out for plans until next year helps a lot tbh because their stock had been in downward turns due to the enlistment issue and now it’s decided and there’s a clear plan too
- I think it really helps the attitude that army has. We loudly said we are going nowhere. And it’s published by the media. So even non army can hear it
- I was preparing to buy the stocks today, i shouldve done it yesterday when it went down ?
- Investors now know there is a plan set in motion something that if they truly understand they company they are investigating on should had figure out a long time ago.
Although the news has come as a shock, BTS has proved that their influence is still huge, with more certainty benefiting rather than hindering HYBE’s stocks.