If BTS goes to the military, who will keep the stock price of Hive? Hive drops for 4th straight trading day
On the 10th, Hive closed at 23,500 won, down for four consecutive trading days. Hive fell to 7% from the previous day at the beginning of the market, but recovered to -2.12% after that.
It is believed that the BTS military issue played a major role in this weakening of investment sentiment. Shinhan Investment Researcher Jinhae Jin said, “If BTS’ military enlistment becomes official, it could be evaluated as ‘resolving uncertainty’, but it seems that the current situation is not affecting the stock price.”
Hive’s dependence on BTS is very high as Meritz Securities estimated that of Hive’s operating profit of 190.3 billion won last year, Big Hit Music, to which BTS belongs, accounted for 67% of its operating profit. The stock market is lowering the target price of Hive due to the uncertainty of BTS’ military enlistment. Samsung Securities raised its target price for Hive by 14.8% from 440,000 won to 375,000 won. In addition, ▲IBK Investment & Securities 500,000 won → 380,000 ▲ Eugene Investment & Securities 470,000 → 430,000 ▲NH Investment & Securities 470,000 → 440,000 won all at once.
A bill to amend the Military Service Act to include pop culture artists in the range of art and sports personnel currently serving alternative service has been pending in the National Assembly since November last year. Member Jin, who was born in 1992, received a recommendation from the Minister of Culture, Sports and Tourism to postpone his enlistment in accordance with the revised Military Service Act in 2020, so his enlistment has been postponed until the end of this year. The revised military service law in 2020 aims to include outstanding performers in the field of popular culture and art among those who can postpone military conscription or convocation last year.
The controversy over whether BTS will enlist in the military is expected to continue until the amendment to the Military Service Act is passed. On the 4th, then Minister of Culture, Sports and Tourism Hwang Hee said, “Recently, Korean pop culture artists have clearly achieved national prestige. ” he asked the National Assembly.
Overseas, attention is also being paid to BTS’ enlistment. In an article titled ‘Korea Divided by BTS Military Service Controversy’, the foreign media recently reported, “The Korean people are divided over whether or not members in their 20s will be exempted from military service in recognition of their contribution to international fame regarding the law on special military service to be discussed in the National Assembly.” said. On the 3rd, an article titled ‘Will BTS really enlist in the Army’ was published in Diplomat, a US diplomatic magazine on the 3rd.
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