HYBE stocks crash after BTS announces hiatus from group performances

HYBE stocks crash after BTS announces hiatus from group performances
ABC

Even though the company that controls BTS‘s label, HYBE, countered claims the group is going on hiatus, consider its investors rattled.

The South Korean entertainment company’s stocks took a nosedive on Wednesday after BTS announced their break to work on solo projects. Stocks plunged about 25%, but the market shakeup was widely expected after BTS’ announcement. Apparently, BTS is responsible for making up about 20% of HYBE’s overall stock because of their massive global influence.

Big Hit Music, a subsidiary company of HYBE that is responsible for BTS’ group activities, attempted to extinguish concerns expressed by fans and investors that BTS members are permanently turning the page on their collaborative efforts and beginning a new journey to pursue solo projects.

“The group will remain active as a team while taking individual journeys to further achieve personal growth,” the entertainment company told ABC News.

HYBE also issued a statement Wednesday, saying, “BTS are not taking a hiatus. Members will be focusing more on solo projects at this time.”

Meanwhile, military enrollment is looming for the septet as South Korea mandates all able-bodied men serve in the military for about two years. K-pop stars can defer military service until they turn 30. The oldest member of BTS, Jin, is due to enlist in December, which also could affect HYBE’s stocks.

As previously reported, the singers told fans on Tuesday they’re going on haitus. The Grammy nominees cited exhaustion and a loss of direction as reasons for the break.

J-Hope assured fans the hiatus would be good for the group, saying it will allow them to “become stronger” and “start our second chapter.”

Big Hit has since announced J-Hope is working on a solo album while other members are working on “collaborations with other artists.”

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