The crisis became an opportunity. HYBE, once shaken by BTS military enlistment, has shrugged off the concerns. Chairman Bang Si-hyuk is working through the challenges brought by the 'K-pop crisis' theory and creating new opportunities.

By the end of last year, securities analysts predicted that HYBE would be the only one of South Korea's top four entertainment companies to experience a decline in operating profit. The reasons included the absence of full-scale BTS activities, instability of artists who needed to fill the void, and the costs of investing in new businesses and developing new talent.

BTS' military enlistment is expected to last at least three years. HYBE is anticipating the complete return of BTS in 2025, which is also the timing for the members' contract renewals. With the uncertainty of the future, HYBE was shaken.

After BTS announced a temporary group hiatus due to military enlistment, HYBE's stock price fell by more than 27%. The company's operating profit for the third and fourth quarters of 2022 dropped 7.62% compared to the previous year without BTS.

Despite managing a multi-label system with many artists, the future without BTS was uncertain. With BTS accounting for approximately 60% of HYBE's revenue, the 'BTS dependence' was inevitable.

The 'K-pop crisis' theory emerged from concerns about BTS' moves.

Chairman Bang Si-hyuk said, "The ripple effect of BTS' intellectual property (IP) is much different domestically than what people know. The market shrinks without them." He continued, "But would this crisis end if BTS returns tomorrow? No. The trend of the crisis has already begun, and we need to find alternatives regardless of BTS' existence." He confidently mentioned alternatives such as 'introducing a multi-label system' and 'expanding the fan platform Weverse.'

Contrary to predictions of a decline in corporate value, HYBE achieved record-breaking results in the first quarter of 2023. HYBE recorded 410.6 billion won in sales and 52.5 billion won in operating profit on a consolidated basis for the first quarter of 2023. Sales increased by 44.1%, and operating profit increased by 41.7% compared to the previous year.

In the first quarter alone, HYBE's artists collectively sold 9.11 million albums. After the solo activities of BTS members J-Hope, RM, Suga, and Jimin, HYBE has lined up acts like NewJeans, TOMORROW X TOGETHER, SEVENTEEN, Le Sserafim, and ENHYPEN without any gaps.

NewJeans recorded over 1.3 million album sales with 'OMG,' released in January. Since their debut album in August of the previous year, which sold about 1.2 million copies, NewJeans has enjoyed immense popularity.

SEVENTEEN recorded the highest first-week sales in K-pop history with 4.55 million copies of their tenth mini-album 'FML.' They also reached a career high in their ninth year, landing in second place on the 'Billboard 200.' Le Sserafim achieved remarkable results within a year of their debut, recording 1.25 million first-week sales.

HYBE's stock price has surged 53.7% in the past month, overcoming the crisis caused by military enlistment. Now in a stable period, HYBE is focusing on expanding IP and discovering new businesses.

The rookie group BoyNextDoor will debut on May 30th, and HYBE Labels Japan's group &TEAM is set for a June comeback. The innovative project 'Project L,' which combines music and technology, will also introduce the artist MIDNATT. As early as the end of the year, a HYBE girl group will make their debut in the United States. This collaboration with Geffen Records, a subsidiary of Universal Music Group, marks the first time a K-pop group will debut in the West.

The fan community platform Weverse is also expanding. Weverse is launching a subscription-based service called 'Weverse DM,' allowing artists and fans to exchange private messages.

Currently, Weverse operates official communities for over 80 domestic and international artists, including those not under HYBE. The platform has 65.12 million registered users from 245 countries and regions. Plans are underway for the platform to host artists from SM Entertainment, Japan, and the United States. With the expansion of the community and new services, even more users are expected to join.

HYBE is making a leap from an artist-centric entertainment company to an industry leader. By expanding into various businesses such as content, platforms, and commerce, HYBE is gradually reducing its artist dependence. While there have been many challenges and failures in transitioning from Big Hit Music to HYBE, the company seems to be on a path to success.

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