The next step for K-pop companies is diversification

LAST week, shares of South Korean entertainment company Hybe Corporation suffered a US$1.7 billion rout after members of Korean pop sensation BTS – managed by Hybe – said they would halt group activities while they focused on individual projects for a while.

Hybe shares fell 28 per cent to an all-time low of 139,000 won (S$148) on Jun 15. They closed Wednesday (Jun 22) at 139,500 won, down 48.3 per cent from 270,000 won – the company’s opening price when it listed in 2020.

The market's reaction is understandable. Hybe manages several K-pop groups and has acquired various companies in recent years, but BTS still contributed 84.7 per cent to its revenue in 2020. No breakdown was given for 2021.