HYBE Corporation, the entertainment conglomerate behind global K-pop phenomena like BTS, is facing a turbulent period in the financial markets.
Following the announcement of a high-profile leadership change, the company's stock has plummeted to its lowest point in 18 months.
On July 24, HYBE revealed that Lee Jae Sang, previously the Chief Strategy Officer, will replace Park Ji Won as CEO.
The news has been met with skepticism from both investors and fans, leading to a dramatic drop in HYBE's stock value.
On Thursday, July 25, the company's shares closed at KRW 170,000 (approximately USD 123), marking the worst price since January 2023.
Lee's appointment has sparked significant backlash, mainly due to resurfaced scandals from his past.
Allegations against Lee include claims of "threatening" former ADOR vice president and coercing the release of private communications involving CEO Min Hee Jin.
Additionally, Lee's tenure as CEO of HYBE America has been marred by financial difficulties.
Under his leadership, HYBE America acquired Ithaca Holdings in 2021. The company has since reported substantial annual losses of KRW 70.1 billion (USD 50.8 million) and KRW 142 billion (USD 103 million) over the past two years
The investment in NFTs through Levvels, another venture Lee was involved in, has also been problematic.
Levels reported an operating loss of KRW 18.0 billion (USD 13.0 million) for 2023, with an additional loss of KRW 3.50 billion (USD 2.53 million) in the first quarter of 2024.
HYBE has not held shareholder and board meetings to formalize Lee Jae Sang's appointment.
The company's recent financial struggles and leadership change come when the market is jittery after the announcement of BTS's hiatus in early 2023.
Investors are keenly watching how these developments will impact the company's future.
HERE ARE SOME OF THE NETIZENS' REACTIONS:
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
KpopStarz owns this article.
Written by Cassidy Jones.
