Office Stock Price Crashes Due to “BTS” Reports of Suspension of Activities
The news of the hiatus of the extremely popular Korean group “BTS” has been a shock to many.
It all started with a video on the group’s official YouTube page released on June 14, in which the group’s leader, RM, revealed his busy schedule and said, “In order to keep BTS going for as long as possible, we have to stop our activities.”
“In order for BTS to continue for a long time, we have to stop our activities as a group,” he confessed.
and added, “I need to take time to be alone.” Member V also said,
“I’ve been doing a lot of group activities, so I think there will be a synergy effect if I work as a solo artist for a while and afterwards get back together with the group again.”
He also spoke positively about the group’s dissolution. On the other hand, they strongly denied that the group would disband, and said that they would focus on their solo activities for a while before coming together again as BTS.
The stock market reacted to this news as much as the “ARMY” fans.
On the 15th, the stock price of HYBE plummeted 25% from the previous day to 145,000 won, the first time in a year and seven months since November 4, 2008, that the company’s stock price had fallen below 150,000 won. The market capitalization fell by 1.985 trillion won in one day.
Market insiders said, “Since BTS-related sales account for 70% of the company’s operating income, the market was in a state of near panic selling.”
The market’s reaction was more than expected, and HYBE said that the “group activity suspension” was a mistake and that they would only focus on their solo activities.
“We will focus on our solo activities, but we will also continue our group activities in parallel.”
The company issued an emergency statement to the effect that “the group’s activities are on hiatus.” However, it is not clear whether the market participants believed this statement or not.
After HYBE’s “fire extinguisher,” the closing price on the 16th was only 148,000 won, up 2% from the previous day. Of course, factors other than entertainment, such as global resource appreciation and currency depreciation, may have had an impact, but even taking these factors into account, a 2% return from a 25% plunge was not enough.
“In other words, the market is also looking at HYBE’s statement with skepticism. It would have been different if HYBE had promptly announced a schedule of activities as a group, but if the activities of all seven members as BTS are reduced, the company’s performance will inevitably suffer a setback.”
Many people feel subtle discomfort with HYBE’s assertion and the members’ words.
RM said in a video, “I personally don’t have time to grow. I don’t know what our team is or what we should do anymore. I lost the direction of our activities.”
Several members even shed tears thinking about ARMY.
“I’m sure it’s a stock price measure. When I sense a subtle discrepancy between what the office and the members say, I start to feel uneasy about the future of the group.”
There is also the issue of military service. In Korea, all healthy males between the ages of 18 and 28 are obliged to serve in the military for about 20 months, and although several members of BTS, led by JIN, are over 28 years old, they are still able to perform without military service because of the so-called “BTS Law” passed in 2018 and the deadline was specially extended by two years.
However, that too has an expiration date. JIN will turn 30 this December, and SUGA will turn 30 next March.
“The expression “temporary suspension of group activities” seems to be a roundabout way of referring to JIN and SUGA’s enlistment in the military,” said a reporter from a sports newspaper.
A petition has been filed in Korea to exempt BTS from military service, but it is unlikely to pass.
“There were signs that HYBE’s stock price had taken a nosedive. On June 10, when the culminating album “Proof” was released in South Korea (released in Japan on June 13), it reached a high of 223,500 won ($225,500). However, after the weekend, the price dropped all the way down to 199,000 won on June 13. It seems that many investors thought that the release of the new album would bring a “break” to the market even before the announcement of the suspension of the group.”
The “BTS shock” is likely to continue.
Photo： Reuters/Afro
