HYBE Shares Plunge From 410,000 Won to 160,000 Won, Wiping Out More Than 1 Trillion Won; Shareholders Sigh as Bang Si-hyuk's Stake Value Drops Sharply

[Financial News] HYBE's stock has fallen sharply, deepening investors' concerns about losses. The value of Bang Si-hyuk's stake in the company has also dropped by more than 1 trillion won in a short period.
According to a second-quarter survey by Korea CXO Research Institute, which analyzes corporate finances, Bang recorded the largest decline in stock valuation among the heads of 46 major domestic groups. His stock wealth fell by 1.4058 trillion won from the first quarter, and the decline rate of 35.8% was also the steepest in the survey.
Although HYBE posted its best quarterly results ever on the back of full-group activities by BTS, its stock has remained weak. In the market, concerns that the BTS effect may have passed its peak are being cited as a reason for the decline.
HYBE's stock once climbed above 410,000 won, but it has recently fallen to the 160,000-won range. Compared with its 52-week high of 418,000 won, the stock is down by about 60%. Before the sharp drop, HYBE had announced results that were the best since its founding.
Earlier, HYBE disclosed that its consolidated revenue for the second quarter of this year reached 1.45 trillion won and operating profit came to 170.9 billion won. That marked increases of 105.5% and 159.3%, respectively, from a year earlier. HYBE was the first company in the domestic entertainment industry to surpass 1 trillion won in quarterly revenue and 100 billion won in operating profit at the same time.
However, the stock is approaching historic lows. In this regard, concerns that growth may slow after the BTS world tour are being pointed to as a key factor behind the decline.
Brokerage analysts have also said that the profitability of HYBE's concert revenue has fallen short of expectations. Korea Investment & Securities lowered its target price from 400,000 won to 330,000 won, saying that while BTS concerts expanded the company's top line, the low profitability of the concert segment was reflected in the revision. NH Investment & Securities also cut its target price from 300,000 won to 270,000 won, citing weakening investor sentiment.
Some also link HYBE's weak stock performance to concerns about a slowdown in growth across the broader domestic entertainment industry. Falling album sales, a key revenue source for K-pop agencies, and capital flows in the stock market centered on semiconductors and large-cap stocks were also cited as factors weighing on entertainment shares. Forecasts for second-quarter earnings and target prices for major entertainment companies are also being lowered one after another.
In addition, the investigation into Bang's alleged fraudulent trading has also been weighing on HYBE. He has been questioned by police over allegations that he deceived investors into selling their shares ahead of HYBE's listing.
[email protected] Han Seung-gon Reporter