Recently, Korean media revealed the reason why BTS renewed their contract with Hybe Entertainment and the estimated amount of money the company spent to retain the global music group.
BTS officially signed a contract with Hybe Entertainment until 2025.
According to Sports Chosun, the 7 boys have thought a lot about renewing their contract with Big Hit Music. In particular, the story that BTS wants to tell the audience, the musical direction and musical preferences of each member are the things the group cares about.
The reason why all the members decided to renew their contracts is because they have a deep emotional bond as a "group". BTS is known for having a good team spirit, not just a superficial business relationship.
"As we went through big and small conflicts and hardships together, our relationship became closer than family. We all have a strong pride and love for the group called BTS," Sports Chosun quoted BTS as saying.
Hybe is said to have spent a large sum of money to retain BTS.
Hybe did not disclose the specific figures in the contract. However, Daol Investment & Securities estimates that the upfront payment for BTS' exclusive contract could exceed 21 billion won ($15.6 million) per member.
"At the time of BTS' first contract renewal in 2018, the prepayment was 7 billion won ($5.2 million), and chairman Bang Si Hyuk gave 68,385 shares (currently worth 16.6 billion won) to each member at that time.
With the second exclusive contract, the estimated amount is more than 21 billion won (15.7 million USD)," Kim Hye Young - researcher at Daol Investment & Securities commented.
When BTS and Hybe's second contract was successful, Mr. Kim boldly said: "Concerns about Hybe's future activities have decreased a bit. The stock price is expected to increase."
Previously, on September 20, Hybe Entertainment announced that all 7 members of BTS will renew their contracts with management company Big Hit Music (under the group).
This is an early contract extension and the contract will take effect starting in 2025.
BTS debuted in June 2013, and the group renewed their contract with their management company in October 2018, even before their original contract expired.
Entering "chapter 2", all members have started solo activities and have brought back their own outstanding achievements.
Currently, the company is reviewing BTS's military enlistment status in order to plan to sign contracts with each member in turn, preparing for the group's comeback after 2025.
After Jin and J-Hope, Suga is the next member of BTS to enlist in the military on September 22.
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