HYBE issues clarification on BTS idols selling their shares, says 'it is not related to stock sales'

A significant development in the financial association between K-pop band BTS and entertainment giant HYBE has come to light. Recent reports suggest a change as BTS members terminated their individual shareholder contracts with the chairman of HYBE Bang Si-Hyuk, concurrently with the renewal of contracts between the group and the entertainment company.

What is the shift in the shareholder status?

Previously classified as special related parties due to their individual shareholder contracts with Bang Si-Hyuk, BTS members undertook a substantial move to divest their shares in HYBE Labels back in September. The disclosure, accessed through the Korean stock market's Data Analysis, Retrieval, and Transfer System (DART) on November 14, highlighted the termination of these shareholder contracts and the subsequent divestment by BTS members, as per media reports.

The divestment saw BTS members collectively selling shares valued at billions of won. Notably, Jin divested approximately 12.7 billion won (52,385 shares), while RM, j-hope, Suga, Jimin, V, and Jungkook each participated, selling shares worth 14.1 billion won (58,000 shares), 15.3 billion won (62,784 shares), and 16.6 billion won (68,385 shares) respectively.

HYBE's clarification statement

Addressing the market speculation and activities triggered by these revelations, HYBE issued a statement on November 17. The stated, ""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 significant shift in the financial relationship between BTS and HYBE highlights the group's strategic decision to restructure their contractual ties while renewing their commitment to the entertainment conglomerate. The termination of the special related party status signifies a new phase in their partnership, highlighting a mutual evolution in their association, as per media reports.