Recent controversies involving BTS member SUGA and NewJeans have cast a shadow over HYBE’s considerable plans to issue a 400 billion KRW convertible bond, causing alarm among investors.
Following SUGA's charges of drunk driving, he was issued a summary indictment, with a subsequent fine of 15 million KRW due to his high blood alcohol level. This incident has raised concerns about whether HYBE can successfully carry out its bond issuance amidst mounting risk factors surrounding the company. If the bond issuance fails, analysts suggest it could severely impact HYBE's stock value.
The challenges continue as fan divisions emerge concerning SUGA's actions, with some questioning the implications for his contract. Furthermore, NewJeans recently took to live broadcast to share troubling experiences with management at HYBE, further complicating the corporate landscape. These unfolding events leave HYBE in a precarious position as it navigates investor relations and internal conflicts.
With HYBE eager to reassure stakeholders about its upcoming activities, including plans for a subscriber-based service on Weverse, the potential for future success hangs in the balance. However, the specter of SUGA's drunk driving issue and other controversies looms large, complicating the company’s projections.
The unfolding situation around HYBE’s convertible bond issuance exemplifies the intricate web of challenges facing the K-pop giant, making it a critical subject for industry observers moving forward.