Compared to its 52-week high, HYBE’s stock price has fallen by around 60%.
Koreaboo
1 hour ago
HYBE’s stock price has taken a major hit, leaving many investors frustrated and devastated.
The company’s shares, which previously surpassed ₩410,000 (about $293 USD), have fallen into the ₩160,000 range (about $114 USD) as it continues to record new lows.
| Yonhap
The drop has also significantly impacted HYBE Chairman Bang Si Hyuk’s personal stock holdings, with more than ₩1 trillion (about $714 million USD) reportedly disappearing from his stake.
According to the Korea CXO Institute, which recently analyzed the stock holdings of leaders at 46 major Korean groups, Bang Si Hyuk experienced the largest decline in the second quarter.
His stock holdings reportedly decreased by ₩1.4058 trillion (about $1 billion USD) in just one quarter, making it the biggest percentage decline among those included in the survey at 35.8 percent.
| HYBE
Ironically, the earnings report HYBE released shortly before the stock crash was the strongest in the company’s history.
— Herald Corp
For the second quarter of this year, HYBE reported ₩1.45 trillion (about $1.04 billion USD) in revenue and ₩170.9 billion (about $122 million USD) in operating profit. Compared to the same period last year, the company’s revenue increased by 105.5%, while operating profit rose by 159.3%.
This marked the first time a Korean entertainment company surpassed both ₩1 trillion (about $714 million USD) in quarterly revenue and ₩100 billion (about $71 million USD) in operating profit simultaneously.
However, the strong results did not prevent the company’s stock price from continuing to fall.
| Korea Herald
Many analysts believe investor concerns about HYBE’s growth prospects have contributed to the decline. In particular, fears of a potential “peak out” after BTS’s world tour — meaning the group’s activities may have already reached their peak before growth slows — have affected investor confidence.
Although BTS’s full-group activities helped HYBE achieve record results, some investors are questioning whether the company can sustain the same level of growth once the group’s major activities slow.
| Yonhap
Analysts have also raised concerns about the profitability of HYBE’s concert business. While BTS’s performances have increased the company’s overall revenue, some reports suggest the concert division’s profit margins have not met expectations.
As a result, several securities firms have lowered their target stock prices for HYBE.
| HYBE
HYBE’s decline has also raised wider concerns about the K-Pop industry. Album sales, which have traditionally been a major source of income for entertainment companies, have reportedly slowed, while the stock market has increasingly focused on semiconductor and large-cap companies.
Expectations for the performances and stock prices of other major entertainment companies have also been lowered.
HYBE Dethroned By Rival Company As Highest Earner In South Korea
Adding further pressure to HYBE is the ongoing investigation into allegations involving Bang Si Hyuk. He has been investigated over accusations that he misled investors into selling their shares before HYBE’s stock market listing.