Editor's Note: This article is the 38th installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations.
SEOUL, October 1 (AJP) - HYBE, the Korean entertainment powerhouse behind BTS, has become a defining force in the global music industry. What began as Big Hit Music under founder Bang Si-hyuk has grown into a multi-label empire that not only produces K-pop superstars but also manages an expanding portfolio of international talent.
HYBE's story begins with Bang, a former JYP Entertainment producer nicknamed "Hitman" Bang for his hit-making record. In 2005, he launched Big Hit Music with the vision of nurturing artists who could tell authentic stories through music. That philosophy culminated in the debut of BTS in 2013, a group that distinguished itself by addressing social issues and the struggles of youth in its lyrics while showcasing the polished performances of Korea's idol system.
Though BTS did not achieve instant stardom, their 2015 release "The Most Beautiful Moment in Life, Pt. 1" propelled them to prominence and transformed Big Hit Music from a little-known agency into a rising K-pop force.
A global empire under HYBE
In 2021, Bang rebranded the company as HYBE under the mission "We believe in music." Big Hit Music remains a core label, now joined by Pledis Entertainment (Seventeen), Source Music (LE SSERAFIM), and ADOR (NewJeans), among others.
With BTS on a two-year hiatus for mandatory military service, HYBE has used the time to broaden its global reach, exporting its distinctive idol training and fan engagement model.
"HYBE will lead the paradigm of the global music industry, continuing to create innovations that connect artists and fans," said CEO Lee Jae-sang. "We will optimize our artist portfolio both in Korea and abroad, strengthen our presence in the global music market, and pursue sustainable long-term growth."
In Japan, HYBE launched &TEAM through the "&Audition" project. In the U.S., it debuted KATSEYE, a girl group formed through a global audition program that has already posted strong streaming numbers and is preparing for its first world tour. Similar ventures are underway in Latin America and China, while a new Indian headquarters plans nationwide auditions to tap into the country's 1.46 billion population. This "glocalization" strategy aims to blend HYBE's proven K-pop system with local cultural identities.
Financial strain without BTS
Still, the absence of BTS has weighed on HYBE's bottom line. In the second quarter of 2025, the company reported record revenue of 705.6 billion won ($520 million), up 10.2 percent year-on-year, with operating profit rising 29.4 percent to 65.9 billion won. Yet in 2024, despite posting its highest-ever annual revenue of 2.2 trillion won ($1.6 billion), operating profit tumbled 38 percent to 184.8 billion won, squeezed by BTS's hiatus and heavy investments in KATSEYE and HYBE Latin America.
Comeback hopes fuel investor confidence
The anticipated return of BTS is already lifting investor sentiment. HYBE shares closed at 268,000 won on Wednesday, up nearly 58 percent from 170,100 won a year earlier, and 14 percent higher than six months ago. Analysts attribute the rally to both the group's looming comeback and early signs of success from HYBE's localized groups.
Industry watchers expect the return of BTS to spark record-breaking tours and album sales, potentially surpassing even the group's past milestones. The comeback is widely seen as a watershed moment for both HYBE and the global K-pop industry.
"I remain optimistic about HYBE's stock outlook for next year," said Kim Min-young, media analyst at Meritz Securities. "Next year will be when results start to show in the numbers."
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