Seoul: In a recent development surrounding the acclaimed South Korean group BTS, a significant shift in their association with HYBE, the entertainment company formerly known as Big Hit Entertainment, has emerged. Previously, the BTS members were classified as special related parties, signified by individual shareholder contracts with Bang Si-Hyuk, the chairman of HYBE.
However, recent reports indicate a paradigm shift as these shareholder contracts have now been terminated concurrently with the renewal of contracts between BTS members and HYBE. The revelation of this transformative move came to light through the Korean stock market, accessed via the Data Analysis, Retrieval, and Transfer System (DART).
The disclosure, unveiled on November 14, disclosed a strategic move by BTS members who opted to divest their shares in HYBE Labels back in September. The magnitude of this financial maneuver is noteworthy, with individual members such as Jin, RM, j-hope, Suga, Jimin, V, and Jungkook collectively selling shares amounting to billions of won.
Specifically, Jin divested approximately 12.7 billion won (52,385 shares), while RM, j-hope, Suga, Jimin, V, and Jungkook each participated in this strategic divestment, selling approximately 14.1 billion won (58,000 shares), 15.3 billion won (62,784 shares), 16.6 billion won (68,385 shares) each, respectively.
Addressing the widespread speculation and market activity, HYBE issued a statement on November 17th, clarifying, “The members did not sell their shares, and with the termination of the contract between Chairman Bang Si-Hyuk and BTS members as shareholders, they are no longer considered special related parties. It is not related to stock sales or fluctuations”. This statement seeks to dispel any notions of BTS members parting ways with their shares in HYBE, emphasising the termination of the special related party status and contractual modifications as the driving factors behind this transformative shift in their financial association with the entertainment conglomerate.
