HYBE, the powerhouse behind BTS, continues to face turbulence as its Chairman Bang Si Hyuk was recently indicted for alleged violations of the Capital Markets Act, including engaging in unfair trading practices. What should have been a season of momentum—driven by BTS’s upcoming return from military service—is now overshadowed by growing owner risk and investor skepticism.
On July 22 KST, HYBE closed at ₩272,500, down 1.27% from the previous day. The stock has plunged nearly 16% since hitting an intraday high of ₩323,000 about three weeks ago. The drop began on July 9, following news that financial authorities were referring Bang Si Hyuk’s case to prosecutors.
Meanwhile, HYBE’s competitors—SM Entertainment, JYP Entertainment, and YG Entertainment—are seeing upward trends in stock prices. Expectations surrounding the easing of China’s “Korean Wave ban” under President Lee Jae Myung’s administration and strong MD (merchandising) revenue have buoyed their valuations. YG, in particular, has a strong outlook for Q3, driven by BLACKPINK’s world tour, BABYMONSTER’s debut tour, and TREASURE’s comeback. As of July 22, YG closed at ₩87,800, marking a 92% increase since the beginning of the year.
In response, HYBE is aggressively pursuing rookie group development to diversify its intellectual property portfolio. While BTS will soon return as a full group, SEVENTEEN’s members are entering military service, and the tensions with NewJeans and ADOR remain unresolved—making stable IP generation a top priority. On July 4, HYBE announced its HYBE Music Group Audition, with applicants able to audition for BigHit Music, BELIFT LAB, Source Music, Pledis Entertainment, KOZ Entertainment, ADOR, and YX LABELS.
A new boy group under BigHit Music is also scheduled to debut next month. This marks BigHit’s first rookie boy group since TOMORROW X TOGETHER (TXT) in 2019. Analysts are paying close attention. KB Securities researcher Lee Sun Hwa maintained her target price of ₩370,000, stating:
“HYBE has multiple debut milestones. Following the debut of boy group AOEN, BigHit will launch another group in Q3 positioned as BTS’s successor. In addition, HYBE plans to debut localized artists in North and Latin America by 2026.”
However, she also offered a note of caution:
“Before BTS’s full-group activities ramp up again, the debut costs of new groups could weigh on HYBE’s profit leverage in the short term.”
SEE ALSO: Bang Si Hyuk sued by investors, HYBE could face delisting
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