BTS ignores warnings from fans, renews with HYBE, incident strikes, loses future?

HYBE is one of the top boy band training companies in Korea, producing big names, including BTS. Now that the situation has reversed, as the police are speeding up the investigation of HYBE's President, will BTS be in danger?

On the morning of July 24, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency (South Korea) was present at the headquarters of HYBE Group in Yongsan, Seoul to raid the building and conduct a search and seizure of assets.

The operation was conducted as part of an ongoing investigation into alleged fraud and unfair trading practices by the company's chairman, Bang Si Hyuk.

Chairman Bang Si Hyuk is accused of misleading existing HYBE investors in 2019 that the company had no plans to go public (IPO), prompting them to sell their shares to a private equity fund (PEF) set up by Bang Si Hyuk's acquaintance. Meanwhile, HYBE continued to expedite the IPO process.

Financial authorities reported that Chairman Bang Si Hyuk had earned 190 billion won in illegal profits, including 30 percent of the proceeds from selling shares of private equity funds.

Police began investigating late last year after allegations emerged about transactions between Bang Si Hyuk and a private equity fund owned by his close associate.

In April and May of this year, the police applied for a search warrant, but the prosecution rejected it. On July 17, the police continued to apply for a search and seizure warrant for HYBE headquarters, which was approved, thereby speeding up the investigation process.

Immediately after the news that Bang Si Hyuk’s case had been transferred to the prosecutor’s office on July 9, HYBE shares began to fall. As of July 22, the stock closed at 272,500 won, down nearly 16% from its peak of 323,000 won just three weeks earlier. Investor confidence was shaken, especially since the legal scandal did not occur during a quiet time, but right when the company needed to stabilize in preparation for BTS’s historic comeback after the group completed their military service.

Meanwhile, competitors such as SM, JYP and especially YG are soaring in the stock market.

The fact that a boss behind the management company is involved in legal trouble will more or less affect BTS's current activities and comeback projects next year or in the future. No one dares to guarantee that BTS will maintain their position forever.

HYBE has been approaching contract renewals for its key artists. The record giant is set to renew contracts with most of its male idol groups, such as BTS, Seventeen , TXT , and ENHYPEN .

BTS has renewed their contract with HYBE in 2023, but it is reported that the group's renewal period may be shorter than the previous contract.

In the latest renewal, HYBE did not publicly announce the term, leading many to believe that this was a temporary extension and the contract could expire in 2026 or 2027.

Seventeen signed an early renewal and will make a decision on their next contract in 2026. However, some members' military enlistments may delay their renewal progress, while foreign members are expected to negotiate contracts first.

TXT is headed for its first contract renewal in 2026, and ENHYPEN — the youngest of the four groups — will face its first renewal in 2027.

With HYBE's major boy groups set to renew their contracts, netizens are having debates.

Among them, many viewers advised: "BTS should leave and create the music they want under their own label". "After witnessing what HYBE did with NewJeans, I think BTS should leave to develop" - one viewer commented.

"BTS should leave and go their own way, even if some members choose to stay. Hopefully they can get out of HYBE safely," commented one viewer. Others said, "BTS and Seventeen are still uncertain, but TXT and ENHYPEN will probably stay. They haven't fully established their solo careers yet, and from an artist's perspective, there's no reason not to renew - even if they disappoint their fans."

Fromis_9 was neglected by HYBE since their debut, not allowing a comeback, just for 1 reason Quỳnh Như10:55:00 09/05/2024In the midst of the storm, New Jeans and HYBE have caused a stir recently. Although Fromis_ 9 was less affected in the middle of the war of rights between the two sides, they still did not have a comeback like other groups despite debuting for 7 years, but the age gradually faded...