The Financial Supervisory Service reported on August 15th that Chairman Bang Si-hyuk was among the company’s top-earning employees (those who earn more than 500 million won), having received a bonus of 982 million won in the first half of this year. This stands in stark contrast to the company’s previous announcement in March that Chairman Bang’s salary was set at only 1 won.
HYBE clarified the rationale behind Chairman Bang’s salary of 1 won, stating that it was intentionally set to highlight the company’s “Pay for Performance”strategy and reinforce responsible leadership. Despite not receiving a monthly salary in the first half of the year, Bang Si-hyuk was rewarded with nearly 1 billion won in bonuses for his exceptional performance and management skills.
Despite being Chairman Bang, one of the factors contributing to the recent drop in HYBE’s stock price, the company closed at 163,100 won on the 14th, a decrease of 4.56% from the previous day on KOSPI. This marks the fourth consecutive decline, with the last time the stock price reaching the 160,000 won level being on January 2nd of last year.
Despite achieving the highest quarterly revenue in the second quarter of this year, HYBE experienced a significant drop in their operating profit by 37.4% due to underperformance in their gaming business and slow concert sales. This further added to the disappointment of the company’s overall performance in the first half of the year.
The stock price decline was heavily influenced by a number of risks. In addition to HYBE’s conflict with ADOR CEO Min Hee-jin, BTS member Suga’s drunk driving incident also caused controversy. The situation was significant enough to result in Suga being summoned by the police, causing concern for BTS’s group activities in 2025.
The main concern is the potential damage to the owner’s reputation caused by Chairman Bang’s recent scandal. On August 8th, the HYBE Chairman was seen in LA with AfreecaTV BJ Juice Seyeon. Despite HYBE’s explanation that it was a chance encounter and the purpose was to recommend a restaurant, the scandal has greatly impacted HYBE’s image due to ongoing rumors.
Despite the owner’s risk being greater than expected, the impact was not immediately evident. However, as of the 8th, HYBE’s stock has suffered a significant decline of 11.3%, resulting in a loss of 862.2 billion won in market capitalization over the past four days. Without a resolution, the outlook for the situation remains bleak.
Despite ADOR’s significant success as a label with only one artist, NewJeans, there remains a risk of unresolved conflict. However, experts in the securities industry recommend taking a long-term perspective. They believe that there is potential for a rebound in stock prices in the future as other artists join the label and their performances are anticipated.
Kim Min-young, a stock researcher, has upheld her “Buy”investment recommendation, fueling anticipation for the progression of new groups and the ongoing upward trajectory of established IPs.
The source of this information can be found on Daum at https://v.daum.net/v/20240815142303981.
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