The BTS military exemption topic causes HYBE's stocks to flicker

BTS military exemption
K-pop boy group, BTS (Image via GETTY Images)

HYBE's stock prices are wavering due to the BTS military exemption issue, and as of last week, the current unsettling situation has caused a drip in the stock prices.

HYBE's share prices have been falling and rising simultaneously over the past few months, depending on the topic of BTS' military exemption. The multi-billionaire company suffered a big drop in June after the Yet To Come crooners announced a break from their activities as a septet to pursue solo careers.

After news of the temporary hiatus, HYBE's stock price fell by 25%, causing a loss of ₩2.00 trillion KRW (about $1.44 billion USD) in the market capitalization. Since then, HYBE has seen multiple fluctuations - high and low - in their share price.

On Monday, September 19, HYBE clocked a rise of 2.27% in the market. As per the reports, it was the effect of the public survey that revealed how the majority of the people wanted to allow BTS to serve alternative military duty.

HYBE's share price on a rollercoaster ride because of the BTS military exemption discussion

1018 people of over 18 years participated in the Realmeter survey that took place from September 14 to 15, and voted in favor of a revision of South Korea's Military Service Act that would exempt BTS from the current rules for compulsory enlistment. Almost 61 percent of participants acknowledged that the change will allow artists with international fame and respect to serve alternative military duties instead of mandatory military service.

On August 31, HYBE's stock prices rose by 6.76%, as a result of comments made by defense minister, Lee Jong-sup. During a parliamentary defense committee meeting, he announced that the administration will arrive at a decision based on public poll results.

On the heels of his declaration, on September 1, HYBE's share went down by 8.26% during the trading session.

Another survey took place on September 6, which showed that 54.1 percent of people who took the survey would like the boyband to serve in the military. This resulted in HYBE's share price falling further by 4.18 percent.

Since then, no rigid decision regarding the group's military exemption has been made yet. As a result, last Friday, HYBE's stock fell again, to 154,000 won, mostly because of the net selling by foreign investors.

It would be difficult to exempt BTS from mandatory military service

The confusing saga of whether the Dynamite singers will serve the mandatory military service continues to be a point of contention for the public and the fans alike.

Kim Young-bae, an assemblyman from the Democratic Party of Korea, recently proposed a bill that would mandate pop celebrities like BTS to serve alternative military duties. It seems that performing a free concert in Busan, as the PR ambassadors for Korea's bid to host World Expo 2030, is one way they are doing it.

However, soon after, the country's defense minister shared that it would be "difficult" to exempt the septet from the mandatory military service.

Despite multiple statements from the council to frequent wavers on HYBE's stock price, the decision on BTS' military exemption is still pending. However, with Jin, the eldest of the group, turning 30 this December, fans and K-netizens can expect a final decision on the issue soon.

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Edited by Susrita Das
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