HYBE Reports Record Revenue of 2.6499 Trillion Won

HYBE projected that its revenue in 2025 would reach a record high of 2.6499 trillion won, representing a 17.5% increase from the previous year. However, its operating profit dropped to 49.9 billion won, a 72.9% decline compared to 2024. HYBE explained this decline as the result of initial investment costs associated with the Debut of new artists and one-time expenses incurred during business restructuring.

Multiple New Artists Introduced Last year, HYBE introduced several new artists, including the boy group Aoen targeting the Japanese market, CORTIS — HYBE’s first new artist in six years under Big Hit Music — and Santos Bravoos aimed at the Latin market. In North America, the company restructured its business model by shifting from a traditional management-focused approach to an IP business model centered around record labels. As part of this restructuring, asset values were reassessed conservatively, resulting in approximately 200 billion won being recorded as impairment losses in the fourth quarter of last year. These were accounting losses with no actual cash outflow.

Rising Expectations with BTS’s Full-Group Comeback BTS, HYBE’s core IP, returned in its full group formation after about four years. On March 20, BTS released its fifth studio album, “ARIRANG,” and on March 21, it held a free concert in Gwanghwamun Square, Seoul, demonstrating its continued popularity. The world tour scheduled to begin in April, featuring 82 performances in 34 cities worldwide, could generate approximately 1.5 trillion won in tour revenue if average ticket prices (330,000 to 340,000 won for regular seats) are applied based on 4.3 million attendees. Including higher-tier seats such as VIP and sales from tour-related merchandise, total revenue could exceed 2 trillion won.

HYBE America Explores IP Business Opportunities HYBE America is particularly engaged in IP business development by partnering with globally renowned creator Allen Chicken Chow to co-produce a script-based series. The plot follows idol trainees who enter an art academy and form a mixed-band, facing various challenges during their growth. The cast members in the drama are set to debut as real artists, blurring the line between reality and fiction. Given the success of Netflix’s Oscar-winning animated series “KPop Demon Hunters” and its OST “Golden,” leveraging storytelling to develop IP represents a worthwhile endeavor.

Legal Risks Remain Nevertheless, several legal risks persist. Minhee Jin, who won a lawsuit against HYBE over a 25.6 billion won put option, offered a settlement attempt, but HYBE essentially rejected it. HYBE filed a related lawsuit at the Seoul High Court on March 10.