Explained: BTS members Hybe shares and shareholder contract with Bang Si Hyuk, how will it impact the agency
The previous contract restricting BTS voting rights has ended, and a new contract is proposed where they will have voting rights as shareholders in HYBE
Together, BTS and HYBE are a powerful force that has completely changed how people around the world view K-pop. On November 17, however, news broke that members of BTS—who have been acknowledged as special related parties under individual shareholder contracts with Bang Si-Hyuk—may be considering selling their HYBE Labels stock sending shockwaves around the globe. The company was quick to refute such reports and instantly issued a statement that none of the stocks had been touched as of yet. So, what exactly is this share dilemma and how will it impact the K-agency once they are sold?
BTS and HYBE shareholder contract explained
In simple terms, when you buy a stock, you own a small part of the company and that’s what every member of the septet holds in Bang Si Hyuk’s HYBE LABELS. Now, according to the report, BTS members Jin, J-Hope, RM, Suga, V, Jungkook, and Jimin put their HYBE shares up for sale in September owing to their military commitments until 2025.
However, this was not the truth. As per HYBE, BTS’ previous contracts with Chairman Bang Si Hyuk ended which implies that they no longer are the special related parties of the organization. The previous contract also restricted the members from voting rights.
However, a new contract is proposed where this restriction is lifted, and it's anticipated that all seven members will use their voting rights as shareholders in the future.
Among the benefits of the new contract for members are voting rights and the opportunity to actively participate in HYBE's business choices.
In a statement, HYBE clarified its stance and said “The members did not sell their stocks. It just means that their shareholder contract with Bang Si Hyuk has ended and thus will no longer be considered special related parties. This has nothing to do with stock sales or changes in the stock.”
How much BTS owns in HYBE labels?
Each member of the BTS owns an individual amount of company shares. However, according to the Korea CXO Research Institute, each of the seven BTS members has individual HYBE stock valued at over 10 billion won ($7.8 million). According to Billboard, Bang Si Hyuk maintains an important stake in HYBE, owning 31.8% of the corporation, or approximately 2.54 billion USD.
What will happen if BTS choose to sell their HYBE share
Just the news of their temporary hiatus led to the instant plummeting of the company’s stock back in 2021. The singers of Blood, Sweat, and Tears are largely responsible for HYBE's rise to prominence. If BTS dissolves or cancels their contract, the business might not survive unless artists like them take charge.