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Bernstein’s Enthusiasm for K-Pop Translates into Investing in This Stock

K-pop agency Hybe is being touted as an attractive investment opportunity by Bokyung Suh, a director and senior research analyst at Bernstein. Suh believes in the long-term growth and macro trend of the K-pop sector, especially with the increasing investments from global players like Disney, Netflix, and Spotify. He estimates that there are around 500 million K-pop fans worldwide and expects this number to grow. Hybe, which manages popular boy band BTS, is seen as a prominent player in the K-pop industry alongside SM Entertainment, JYP Entertainment, and YG Entertainment. Suh specifically highlights Hybe’s intellectual property “diversification” as a reason for its potential success, as it allows the company to sustainably run its business. BTS currently contributes approximately 32.8% of Hybe’s revenue.

Hybe recently renewed its contracts with BTS for an undisclosed period of time, alleviating concerns about the company’s long-term growth story. This move showcases Hybe’s strong talent management and transparent investor relations practices. In contrast, YG Entertainment faced a setback when media reports suggested that three out of four members of the girl group Blackpink would not renew their contracts. As the members of BTS will begin or have already started their two-year mandatory military service, their reunion and its impact on Hybe’s financials are expected to occur around early 2026. Suh’s positive outlook for Hybe is driven by the growing popularity of K-content, highlighted by Netflix’s $2.5 billion investment in South Korean media over the next four years and the surge of viewership for Korean romance shows among non-Korean audiences on the streaming platform.

Overall, Suh’s optimistic view of Hybe stems from the belief in the long-term growth potential of the K-pop industry, the increasing demand for K-content, and Hybe’s strong position as one of the leading K-pop agencies. With BTS as its flagship artist, Hybe’s intellectual property diversification strategy ensures a sustainable business model, making it an attractive investment opportunity according to Suh.

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