As if mocking the K-pop crisis theory... HYBE artists consecutively hit their career highs

Jungkook Rewrites K-Pop Solo History
Seventeen, Tomorrow X Together, ENHYPEN Also Hit Career Highs
LE SSERAFIM and NewJeans Set New Records with English Tracks

Recently, as the 'initial sales volume (first-week sales)' of top-tier idols has experienced a slump, sparking a 'K-pop crisis theory,' the 'report cards' of HYBE-affiliated artists have shown an upward trend. Remarkable growth has been observed not only in album sales but also in music streaming.

Jungkook of BTS is making a strong impact as a solo artist
[Photo by Big Hit Music]

SEVENTEEN, TXT, ENHYPEN Achieve 'Career High' in Initial Sales

Every time they release an album, Tomorrow X Together continues to set new 'career highs.' They also hold the record for the shortest period between two consecutive double million-seller albums since their debut (4 years and 7 months).
[Photo by Big Hit Music]

BTS member Jungkook's solo album ‘GOLDEN’ is breaking sales records both domestically and internationally. On the first day alone, 2,147,389 copies were sold, setting a new K-pop solo initial sales (first-week sales) record. Notably, it recorded over 200,000 sales in the U.S. during its first week. The secret to its success lies in the high-quality music and performance showcased through collaborations with renowned artists based on HYBE America’s network.

The '9th-year debut idol' SEVENTEEN surpassed their own 'K-pop initial sales record' once again with their 11th mini-album 'SEVENTEENTH HEAVEN,' released on the 23rd of last month. The initial sales reached 5.09 million copies. Including the album released in April, they set a monumental record of 16 million sales this year. On the 13th of the same month, Tomorrow X Together (TXT), who released 'The Name Chapter: FREEFALL,' also achieved a 'career high' with initial sales of 2.25 million copies. Additionally, TXT holds the record for the shortest period among K-pop artists to achieve two consecutive 'double million-seller' albums since debut (4 years and 7 months).

The momentum of ENHYPEN, part of HYBE Labels' 'youngest line,' is also impressive. Their fifth mini-album ‘ORANGE BLOOD,’ released on the 17th, sold 1,383,292 copies on the first day alone, surpassing the initial sales of their previous album, which was about 1.32 million copies, in just one day. The achievements of HYBE-affiliated artists are particularly meaningful as they show a 'decoupling' pattern from the recent sluggish market conditions. The latest albums from SM’s aespa and JYP’s Stray Kids, whose initial sales were finalized on the 17th, saw decreases of 33.5% and 19.8% respectively compared to their previous releases. This has led to the emergence of the 'K-pop crisis theory,' causing a sharp drop in stock prices across the entertainment industry.

'Decoupling' from Market Conditions Is a Planned Outcome

LE SSERAFIM became the first K-pop girl group to reach No. 1 on Melon's 'Top 100' and daily charts with an English song, "Perfect Night."
[Photo by Source Music]

The decoupling phenomenon is the result of HYBE’s expansion strategy that has been in operation for several years. HYBE has executed acquisitions and mergers such as those of Ithaca Holdings and QC Media Holdings, and joint girl group projects with Universal Music Group (UMG). Recently, they established a Latin America branch. This has led to overcoming regional limitations while expanding the spectrum of their core customer base, the fandom.

HYBE Labels artists continue to set new records in the digital music sector as well. LE SSERAFIM became the first K-pop girl group to top Melon’s 'Top 100' and daily charts with an English song, ‘Perfect Night.’ NewJeans’ 'GODS,' the theme song for the ‘2023 LoL World Championship,’ set records for the highest number of music video views and Spotify streams on the first day among championship theme songs.

Thanks to the combined effect of album and digital music sales, HYBE maintains solid profitability. Their third-quarter performance was also the highest ever, with sales of 537.9 billion KRW and operating profit of 72.7 billion KRW. Despite BTS’s 'military hiatus' (a term combining military service and hiatus), their performance continues to trend upward. This is attributed to aggressive investments that diversified revenue streams globally, rather than concentrating sales in specific regions.

'Deep-rooted Tree' HYBE Grows Even Stronger

Earlier this month, Meritz Securities titled their report on HYBE as 'A Deep-rooted Tree Unshaken by the Wind.' This tree is expected to grow even stronger. This is due to steady mergers and acquisitions (M&A), collaborations with global music companies, and the establishment of networks with world-class composers and producers. This provides a foundation for maintaining solid growth regardless of geopolitical risks in specific regions.

The market is also giving positive evaluations. Eugene Investment & Securities stated, “The diversification of artist IP (intellectual property) and the increasing contribution of music sales from the acquired U.S. label are positive factors,” adding that the multi-label and acquisition strategy has been successfully established. Daishin Securities also commented, “Demand in the Western markets with high purchasing power is strong, so the profit growth of lower-experience IPs will be greater compared to competitors.” A HYBE representative said, “We will fully commit to establishing a sustainable growth structure through aggressive investments.”

This content was produced with the assistance of AI translation services.