Hybe's Stock Plummets Amid Controversies And Financial Disputes

Hybe's Shares Plummet Due to Ongoing Controversies and Financial Disputes Hybe, the Korean entertainment company behind K-pop sensation BTS, saw its shares drop significantly on Wednesday, closing at 163,100 won ($120), the lowest since December 2022. This marked the fourth consecutive day of declines, with the stock down 11. 2 percent since August 8, despite a brief rally following better-than-expected second-quarter results. The company reported record second-quarter sales of 640. 5 billion won, but operating profit shrank 37 percent year-on-year to 50. 9 billion won. The sharp decline in stock value is attributed to multiple setbacks, including BTS member Suga's drunk driving incident and rumors surrounding Hybe Chairman Bang Si-hyuk's relationship with a 23-year-old streamer. These controversies compound ongoing disputes between Hybe and Min Hee-jin, CEO of the subsidiary label Ador... over management rights, which have significantly impacted Hybe's stock performance.

Since peaking at 256,000 won in January, Hybe's shares have plummeted 36 percent. This decline is also mirrored in the performance of SM Entertainment, another Korean entertainment company, whose stock has dropped from a high of around 160,000 won last year to this year's low of 63,700 won on August 5. Despite a 6 percent increase in second-quarter sales, operating profit fell 31 percent, "contributing to a continued stock depreciation in the recent days." Despite these setbacks... market analysts remain cautiously optimistic about a recovery in the K-pop sector, "driven by the anticipated return of major groups later this year." The Korea Herald's analysis provides valuable insights into the current state of the K-pop industry, highlighting the ongoing challenges faced by entertainment companies such as Hybe and SM Entertainment.

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Start your day with a roundup of key stories from The Korea Herald with news and comment on all that's happening in Korea. Hybe, home to K-pop sensation BTS, saw its shares plunge 4.56 percent Wednesday, closing at 163,100 won ($120), the lowest since December 2022.