K-pop group BTS performs during its comeback concert “BTS THE COMEBACK LIVE: ARIRANG” at Gwanghwamun Square in central Seoul, March 21. Yonhap
Shares of HYBE plunged nearly 16 percent Monday, outpacing a broader entertainment sector selloff tied to escalating U.S.-Iran tensions, after a heavily promoted BTS comeback concert in central Seoul drew far less fans than projected. The sharp decline points to waning confidence for a BTS-driven economic windfall.
The K-pop powerhouse closed at 290,500 won ($192.20) on the Korea Exchange, plummeting 15.55 percent from the previous trading session. While the broader market faced headwinds from the Middle East conflict, HYBE’s decline was notably steeper than its peers. Rival agencies SM Entertainment, JYP Entertainment and YG Entertainment lost 9.16 percent, declined 6.80 percent and fell 9.70 percent, respectively. The KRX K-Content Index — which tracks Korean media and entertainment companies — also dropped in the 6 percent range.
Investor sentiment soured after attendance at the March 21 BTS performance at Gwanghwamun Plaza failed to meet initial estimates. Police had expected up to 260,000 people, while the Seoul Metropolitan Government projected a crowd of over 200,000.
An electronic board displays the KOSPI and exchange rates at the Hana Bank headquarters in central Seoul, Monday. Yonhap
However, according to Seoul’s real-time urban data system, actual attendance strictly within Gwanghwamun Plaza reached only 46,000 to 48,000. Even when including crowds gathered in front of Seoul City Hall and the Seoul Metropolitan Council, total attendance was tallied at approximately 77,000 to 83,000. Market analysts noted that BTS comeback expectations had already been priced into the stock since early this year and dissipated upon the album’s release.
Despite the short-term selloff, securities analysts maintained a bullish outlook on the stock driven by the group’s upcoming global tour.
“The BTS world tour kicking off in April is projected to draw approximately 4.6 million attendees based on the dates announced so far, and could exceed 5 million if additional shows are added,” Kyobo Securities researcher Jang Min-ji said.
Jang estimated the group’s financial contribution will reach approximately 1.6 trillion won. Driven by the tour, analysts project HYBE’s annual revenue to hit 4.38 trillion won, up 65.3 percent year-on-year. Furthermore, operating profit is projected to surge 978.2 percent to 538.1 billion won. Reflecting this long-term optimism, KB Securities and IBK Investment & Securities raised their target prices for HYBE to 500,000 won and 480,000 won, respectively.
This article from the Hankook Ilbo, the sister publication of The Korea Times, is translated by a generative AI system and edited by The Korea Times.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source www.koreatimes.co.kr ’
