[Click eStock] "HYBE, BTS Military Hiatus Ends... Rising Expectations for Global Expansion"

On June 12, KB Securities analyzed that expectations for HYBE's expansion in the global market are rising following the end of BTS's military service hiatus.

Lee Sunhwa, a researcher at KB Securities, stated, "With Suga's discharge scheduled for the 21st, all BTS members will have completed their military service, heightening anticipation for a full-group comeback." In addition to BTS, major artists such as Seventeen and Enhypen are actively promoting, and newer artists like Boynextdoor are beginning world tours, which is also seen as a positive factor as their contribution to performance is gradually increasing.

HYBE also has strong momentum for new artist debuts. On June 11, the boy group Aoen, selected through a Japanese audition program, officially debuted. In the third quarter, Big Hit Music is set to debut a new boy group expected to follow in BTS's footsteps. Furthermore, local artist debuts are planned in North America and Latin America in 2026, raising expectations for the expansion of the global fandom.

Lee Sunhwa explained, "The main reason for the upward revision of the target stock price was the 12.5% increase in the 2026 operating profit estimate, driven by BTS's comeback." In fact, with BTS members' discharges approaching, the 2025 BTS FESTA is being held over two weeks from June 1 to June 14, and anticipation for the full-group comeback is at its peak.

BTS debuted on June 13, 2013, marking their 12th anniversary this year. Through the 2025 BTS FESTA, they are implementing strategies to strengthen the unity of their global fandom, ARMY. Jin and J-Hope, who were discharged last year, are continuing their solo activities, and the remaining members are also planning solo projects this year. Full-group activities are expected to begin in earnest in 2026.

Lee Sunhwa added, "A large-scale world tour is anticipated. Considering BLACKPINK's 'BORN PINK' world tour was held 66 times after COVID-19, we estimate BTS's world tour will consist of about 70 shows." She continued, "As the schedules for full-group activities and the world tour are sequentially announced after all BTS members are discharged, we expect consensus estimates to be revised upward and the stock price to gain additional momentum."

Meanwhile, HYBE is accelerating its strategy for the globalization of K-pop. Lee Sunhwa said, "This year, the debut of global local artists is accelerating HYBE's expansion beyond K-pop into the global market," and added, "K-pop is believed to have entered a mature stage due to linguistic limitations and genre characteristics."

She analyzed, "As growth in the K-pop market slows and the debut of new artists from small and mid-sized entertainment companies becomes more active, competition is intensifying. Large entertainment companies are seeking to expand the market and re-rate their valuations through glocalization." She particularly emphasized, "Among the four major entertainment companies, HYBE is pursuing the most active localization strategy and is expected to quickly establish itself in local markets through collaborations with well-known local production companies."