photos surfaced of Chairman Bang Si-hyuk with a controversial internet broadcaster. (Photo: a screenshot from ‘I am WalKing’ Youtube channel)
SEOUL, Aug. 14 (Korea Bizwire) – Investors in HYBE are voicing growing frustration and disappointment, a sentiment increasingly evident in recent discussions on online stock forums.
The entertainment powerhouse behind global sensation BTS has seen its stock price nearly halve since peaking at 312,500 won in June last year, with recent scandals exacerbating the decline.
HYBE’s troubles deepened when BTS member Suga was caught driving an electric scooter under the influence during his alternative military service, and photos surfaced of Chairman Bang Si-hyuk with a controversial internet broadcaster.
These incidents have sparked outrage among shareholders and raised questions about crisis management at South Korea’s leading entertainment agency.
On August 12, HYBE’s stock closed at 172,100 won, down 0.06% from the previous trading day.
The share price had plummeted to 170,100 won on August 5, dubbed “Black Monday” by investors, before briefly recovering to 189,100 won following the company’s earnings report.
However, successive scandals have erased most of these gains.
Shareholders’ ire is directed primarily at the management, including Bang.
HYBE faced accusations of attempting to downplay Suga’s incident by referring to his vehicle as an “electric kickboard” rather than an “electric scooter” in an apology statement. (Image courtesy of Yonhap)
HYBE faced accusations of attempting to downplay Suga’s incident by referring to his vehicle as an “electric kickboard” rather than an “electric scooter” in an apology statement.
The distinction is significant, as driving an electric scooter while intoxicated carries criminal penalties similar to those for automobiles.
Further fueling the controversy, Suga’s blood alcohol content was revealed to be 0.227%, far exceeding the license revocation threshold of 0.08% and even surpassing the 0.2% level for aggravated punishment.
This revelation contradicted his initial statement of having “just one beer” before driving.
The BTS fandom, known as ARMY, finds itself divided.
Some hardcore fans are demanding that Suga be removed from the group, arguing that his actions have tarnished BTS’s carefully cultivated image of upright young men. Others are advocating for a period of reflection before his return to activities.
Adding to HYBE’s woes, photos of Bang walking with a female internet broadcaster known for provocative content in Los Angeles surfaced online.
Despite HYBE’s efforts to contain the spread of these images through legal channels, the controversy has continued to grow.
Industry insiders criticize HYBE’s crisis management approach. “In the K-pop industry, relationship with the fandom is crucial, but HYBE seems to be focusing on protecting its artists and owner,” said a representative from another entertainment agency.
Another industry source noted, “HYBE responded to Bang’s photos like a typical corporation, seemingly without consideration for their primary customers — the fans.”
Lina Jang (linajang@koreabizwire.com)
