Despite its success in producing global K-pop sensations like BTS, HYBE Corporation, the entertainment conglomerate, is currently experiencing a tumultuous time in the financial markets.
After news of a major shift in leadership was released, the company’s stock has dropped significantly, reaching its lowest level in a year and a half.
On July 24, HYBE announced that Lee Jae Sang, who previously held the position of Chief Strategy Officer, will be taking over as CEO, replacing Park Ji Won.
The news was received with doubt by both investors and fans, resulting in a significant decrease in HYBE’s stock value.
On Thursday, July 25, the company’s stocks reached a low of KRW 170,000 (equivalent to approximately USD 123), the lowest price since January 2023.
Despite his appointment, Lee has faced considerable backlash, largely due to the resurfacing of scandals from his past.
Allegations against Lee involve accusations of “intimidating”a former ADOR vice president and pressuring the disclosure of confidential communications involving CEO Min Hee Jin.
Furthermore, HYBE America has faced financial struggles during Lee’s tenure as CEO.
Since taking the helm, the leader has overseen HYBE America’s acquisition of Ithaca Holdings in 2021. As a result, the company has reported significant annual losses of KRW 70.1 billion (USD 50.8 million) and KRW 142 billion (USD 103 million) in the last two years.
The investment in NFTs through Levvels, another venture that Lee was involved in, has also faced challenges.
In 2023, Levels recorded an operating loss of KRW 18.0 billion (equivalent to USD 13.0 million), followed by an extra loss of KRW 3.50 billion (USD 2.53 million) in the first quarter of 2024.
Despite Lee Jae Sang’s appointment, HYBE has yet to hold any shareholder or board meetings to formalize the decision.
The announcement of BTS’s hiatus in early 2023 has added to the market’s already jittery state, coinciding with the company’s recent financial struggles and change in leadership.
The company’s future is being closely monitored by investors in light of these developments.
HERE ARE A FEW RESPONSES FROM NETIZENS:
Min heejin karma! U wanna bring a new ceo to run away from the lawsuitA new low for Hybe and a new high for their antis…. How the irony to thank them for ruining everything
A new low for Hybe and a new high for their antis…. How the irony to thank them for ruining everything
Trust is very important for a company to be successful if it’s lost then your doom
It’s time to clean Hybe, it’s filled with so many untrustworthy people
I AM SO EXCITED in what will happen next….. Hybe exposing MHJ messages. NJ being on break. NJ mothers being petty and bitter, HYBE having a new CEO. HYBE 2.0 I AM SITTED.
Deserved, this is all Hybe and bang hippo’s doing. Your unprofessionalism and pettiness have cost BTS a lot of money
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