HYBE’s Strategic Commitments and BTS’s Role Revealed at Shareholders’ Meeting
During HYBE’s recent shareholders’ meeting, CEO Lee Jae-sang reiterated the company’s dedication to its multi-label model amidst ongoing legal disputes involving subsidiary ADOR. As reported by South Korean media outlet NewsTomato, Lee addressed significant concerns regarding the group’s return while affirming the strategic direction of the agency.
Lee acknowledged current challenges, noting a drop in operating profit as well as changes in revenue distribution and increased investments in new projects. He highlighted that HYBE now manages four prominent labels in the United States, including QC Music and BMLG.
Pointing to the multi-label framework, Lee credited HYBE’s elevation to the status of the fourth-largest music company globally by market capitalization. He believes this structure lays the groundwork for sustained international growth.
BTS Fans Urge Focus on the Group’s Future
Many within the BTS fandom, known as ARMY, attribute HYBE’s remarkable success largely to the global phenomenon that is BTS. Fans have voiced their opinions on social media, emphasizing that it was the group’s monumental achievements that positioned HYBE as a leader in the music industry.
One fan remarked,
“Everyone in HYBE should remember this and treat BTS accordingly.”
“THE WORLD’S 4TH LARGEST. Read that. The boys built HYBE. Their blood, sweat, and tears. Many watch with envy. So stop giving them crumbs that lead to our boys!”
“Bookmark this and every time you feel the need to argue with kpoppies, look at it and remember who you stan. They are currently one of the biggest artists in the world who built the 4th biggest music company in the world. Why are you still arguing with nobodies on the internet?”
“This is why everyone wants to take down BTS specifically. The music industry keeps making new rules that hinder them. Imagine becoming the 4th biggest company thanks to one single group alone. No wonder the hate,”
Insights on BTS’s Contribution to HYBE’s Growth
Fans continued to articulate the vital role BTS played in HYBE’s ascent, with many stating the group’s contributions transcended typical business metrics.
“HYBE’s rise in the global music market and its place among the world’s biggest music companies are solely due to BTS’s unmatched massive success. Their talent and hard work saved a bankrupt company, drove cultural impact, and even boosted their country’s GDP. BTS PAVED THE WAY,”
Another fan emphasized,
“The craziest part is they transformed a bankrupt company into the largest entertainment company in Korea. HYBE ranks as the fourth largest company following Universal Music Group, Sony Music Entertainment, and Warner Music Group.”
“BTS built Big Hit to HYBE level all by themselves. If BTS hadn’t supported HYBE from the ground up, many groups wouldn’t have achieved the success they enjoy today,”
Looking Ahead: BTS’s Military Service and Future Plans
Recent reports from the South Korean media outlet Bloter reveal optimistic projections for BTS, with the group expected to complete their military service in June. A full-group comeback is anticipated for later this year, alongside a world tour set to resume in 2026. Securities experts project a significant growth in HYBE’s operating profits, forecasting a remarkable 54% increase to roughly 500 billion won next year.
During the March 31 meeting at the Listed Companies Association in Mapo-gu, Seoul, Lee reiterated that BTS members will need time to finalize their return plans post-military service completion.
Bloter also reported that HYBE is engaging top-tier producers while ensuring the group considers their artistic vision in the planning stages. Lee acknowledged the traditional process of music creation, album releases, and touring, yet noted that BTS’s global status necessitates careful discussions regarding their next moves.
Legal Battles and Governance Challenges Amidst Expansion
NewsTomato further outlined that HYBE discussed critical business matters during the meeting, including ongoing litigation with ADOR and governance challenges. Lee expressed confidence in the multi-label structure despite current disputes involving NewJeans, reiterating the company’s commitment to global expansion.
The Seoul Central District Court recently ruled in ADOR’s favor, placing restrictions on NewJeans from pursuing independent activities until the legal matters are resolved. Market analysts have raised concerns about the effectiveness of HYBE’s governance given these challenges.
Lee additionally emphasized the company’s expanding footprint in Japan and Latin America and highlighted its growing success within the US market with labels like QC Music and BMLG. Despite a net loss last year, HYBE announced a dividend payout of 200 won per share, approximating to 8.3 billion won, while committing to maintaining an annual dividend policy at 30% of the controlling shareholder’s net profit.
The shareholders’ meeting concluded with all governance-related proposals approved, including the reappointment of outside director Lee Mi-kyung and the introduction of new outside directors Lee Sang-seung and Baek Seung-ju.
As BTS continues to break records, they have become the first Asian act to achieve over one billion streams on Spotify for nine consecutive years, from 2017 through 2025. Currently, five out of the seven members are fulfilling their military obligations, expected to complete by June 2025. Meanwhile, j-hope is conducting his HOPE ON THE STAGE world tour, showcasing new tracks, while Jin is preparing for a Netflix variety show debut in 2025.