HYBE, the powerhouse behind global K-pop sensation BTS, has openly addressed the financial strain caused by the group’s mandatory military enlistment. During the company’s annual general shareholders’ meeting on March 31, CEO Lee Jae Sang acknowledged the challenges stemming from BTS’ temporary hiatus but reassured stakeholders that strategic initiatives are in place to navigate this period.
Since BTS members began their enlistment, HYBE has experienced a notable shift in its revenue stream. Although the company continued to generate substantial earnings in 2024 through concert tours by other artists under its label, its overall operating profit declined. Lee attributed this downturn to changes in revenue distribution, ongoing investments in new business ventures, and, most significantly, the absence of BTS—previously the company’s strongest financial driver.
BTS’ influence on HYBE’s success has been undeniable, with their music, world tours, and merchandise sales setting record-breaking benchmarks. Their hiatus has inevitably left a gap, prompting HYBE to accelerate efforts in diversifying its business model and expanding its global presence.
To counteract these financial challenges, HYBE is implementing a multifaceted recovery plan. A key focus is enhancing its digital services, particularly Weverse, its global fan engagement platform. With steady growth in user activity and monetization, Weverse has become an essential tool in maintaining artist-fan interactions and driving digital revenue. Furthermore, HYBE is venturing into the gaming industry, a sector with immense potential, aiming to establish an additional sustainable income stream beyond music and live performances.
HYBE is also intensifying its expansion into international markets, with Japan emerging as a major source of revenue. The company’s Japanese operations generated between 600 billion and 700 billion KRW last year, securing its position as the third-largest entertainment company in the country. Building on this success, HYBE is launching an audition program to debut a new idol group in Japan, reinforcing its strategy of developing talent across key markets.
Beyond Japan, HYBE is strengthening its “multi-home, multi-genre” approach—diversifying its music portfolio, artist management strategies, and market operations. This initiative aims to build a more resilient business structure capable of withstanding industry fluctuations and external disruptions, such as BTS’ enlistment.
While these measures are designed to maintain financial stability, BTS’ highly anticipated return in 2025 remains a pivotal moment for the company. Their comeback is expected to drive a surge in album sales, streaming numbers, merchandise purchases, and concert ticket revenue, significantly boosting HYBE’s earnings.
Despite the current financial hurdles, Lee assured shareholders that HYBE is well-equipped for long-term growth. By diversifying its revenue sources, expanding its global footprint, and preparing for BTS’ eventual return, the company is laying a solid foundation for sustained success. With a clear strategic vision, HYBE is determined to emerge from this transition period stronger than ever.
