BTS estimated to have over 21 billion KRW contract renewal deposit with HYBE: Details inside

Research revealed that BTS will receive a whopping 21 billion KRW deposit for their exclusive contract renewal with HYBE and BIGHIT MUSIC

Updated on Sep 21, 2023   |  12:25 PM IST  |  273.8K
BTS (Photo Courtesy: BIGHIT MUSIC)
BTS (Photo Courtesy: BIGHIT MUSIC)
Key Highlight
  • BTS is estimated to receive 21 billion KRW from HYBE
  • BTS is said to play a crucial factor in the performance of HYBE after 2025

BTS confirmed their 2025 comeback and renewed their exclusive contract with the label BIGHIT MUSIC. It was confirmed that the septet will continue as a group after completing their mandatory military service. The agency is directly a part of the HYBE LABELS corporation and a report was released by Daol Investment and Security regarding BIGHIT MUSIC's parent agency. According to the report, BTS is estimated to receive more than 21 billion KRW worth of exclusive down payment. Read below to learn more about the BTS' contract with HYBE. 

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BTS to receive an estimated amount of 21 billion KRW from HYBE

On September 21, Daol Investment and Securities shared a report regarding BTS and HYBE's contract. The research said that BTS will contribute highly to the agency's performance after the second of 2025. It added that the growth will be influenced by BTS alongside the success of the new idols and artists. This is why, the investment opinion regarding "buying", and the target price of stock was set at 340,000 KRW. Researcher Kim Hye Young said, "The first exclusive contract renewal of BTS in the year 2018 was summed up to 7 Billion KRW (approximately 52,20,335 USD) ".

The researcher added, "Considering the previous contract renewal cases, this exclusive contract renewal is estimated to be more than 21 billion won (approximately 1,56,61,006 USD) ". According to the Daol Investment and Securities researcher the contract period has not been disclosed publicly, but presuming that if a full-scale activity commences in the second half of 2025, it is expected to last around 5 years which includes their military enlistment period as well. 

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BTS' impact on HYBE's performance

According to the analysis, BTS's activities in 2025 will be a major factor that will add stability to HYBE's performance. As reported by researcher Kim Hye Young, "Because SEVENTEEN's military service will begin in 2024, BTS's activities after the second half of 2025 are a factor that would bring stability to HYBE's performance." Adding to that, "With this BTS' exclusive contract renewal, concerns over HYBE's future performance have diminished slightly. It was highlighted that the stock price of HYBE is expected to rise. 

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ALSO READ: BREAKING: BTS' seven members to renew contracts with HYBE for second time, will continue as group after 2025

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About The Author

Inaas Fatima Khan is a media graduate from the University of Mumbai. She is a Hallyu enthusiast from Korean

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Credits: Daol Investments and Securities, Financial News
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