Connect with us

Hi, what are you looking for?


Shares in HYBE up after BTS clears uncertainty over military service

BTS in 2019 Clockwise from left: Jin, RM, Jungkook, J-Hope, Suga, V, and Jimin — DISPATCH/EN.WIKIPEDIA.ORG/

SEOUL — The announcement by K-pop mega band BTS that members would serve mandatory military service in South Korea has removed a cloud of uncertainty that has hung over their plans.

Investors in HYBE Co., BTS’ management group, responded to the news by driving its shares up as much as 7.8% on Tuesday.

The relatively shorter break, after the company picked 2025 as the potential date for BTS’ return as a group, also appeared to hearten the market.

“Sales from BTS will not disappear. Members’ individual activities, release of content and photobooks already filmed and older album sales will be highly profitable,” said Ji In-hae, analyst at Shinhan Investment Corp.

“However, with the biggest moneymaker absent, the key (for HYBE) will be how much sales are made from new businesses,” including Ithaca Holdings, Ji added.

A South Korean pop culture phenomenon and success story, BTS have become a worldwide sensation since their 2013 debut. Their upbeat hits and social campaigns aimed at empowering youth catapulted the band as the world’s best-selling artists in 2020 and 2021, according to International Federation of the Phonographic Industry.

As the biggest grossing K-pop act, some 880 billion won ($615.11 million) in sales were generated by BTS in 2021 alone, about 70% of HYBE’s 1.3 trillion won revenue, said Hazell Lee, analyst at NH Investment & Securities.

In 2020, BTS accounted for 730 billion won in sales out of the company’s 796 billion won revenue, she noted.

During the 2020 initial public offering (IPO) of what is now HYBE, the seven members received a total of 64.6 billion won worth of common shares, or 9.23 billion won of shares each based on the IPO price.

Forbes estimated BTS had an annual income of $50 million as of 2020.

BTS’ economic impact will be partly eroded while the members carry out their military service.

The Korea Culture and Tourism Institute estimated that BTS’ 2020 No. 1 hit on the Billboard Hot 100 chart, “Dynamite,” had an economic impact worth 1.7 trillion won including direct sales and exports of related goods such as cosmetics and clothing.

Hyundai Research Institute estimated that BTS’ average annual production impact is about 4.1 trillion won, and the value-added economic effect is about 1.4 trillion won, in a 2018 report.

The relatively short break for the members, however, has set at ease investors and fans alike.

“Demand will be maintained, as the vacuum that will be felt by the fandom is only about one year with members carrying out individual activities while enlisting sequentially,” NH’s Lee said. — Reuters

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



BW FILE PHOTO LOCAL equities are expected to decline in December as investors are seen to pocket their gains from the market’s recent rally...

Editor’s Pick

Two new surveys have recorded sharp falls in business confidence as the uncertain economic outlook causes companies to become more pessimistic. The latest Lloyds...

Editor’s Pick

A small number of London-based derivatives traders at Goldman Sachs are to move to Milan in a further sign of the steady trickle of...

Editor’s Pick

EasyJet is to increase fares by more than 20 per cent and even higher at peak Christmas holiday times as the airline attempts to...

Editor’s Pick

The struggling discount chain Wilko has warned it could run out of money if it is unable to secure additional financing by the end...

Editor’s Pick

HSBC has announced that it will close 114 branches across the UK from next April as it blames the pandemic for a decline in...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.