The seven members of the K-pop superstar BTS could each be worth about 520 billion won ($447.8 million) once their label Big Hit Entertainment lists on the local bourse next month.

The septet, which became the first K-pop act to top the Billboard Hot 100 chart with their latest single “Dynamite,” was responsible for 257.9 billion won of Big Hit’s total revenue of 294 billion won in the first half of the year, according to the agency.

Big Hit acknowledged its high dependence on BTS, saying the band accounted for 87.7 percent of its revenue in the first half of 2020 and as much as 97.4 percent in 2019.

Big Hit is now eyeing one of Korea’s biggest listings this year. It will receive subscription orders from institutional investors on Sept. 24-25 and from retail investors on Nov. 5-6. The price band for its offering has been set at 105,000 won to 135,000 won apiece, with a pricing at the top end of that range to give it a market value of 4.57 trillion won.

At this market cap, BTS would be worth a combined 3.65 trillion won, or about 520 billion won for each member.

Big Hit’s biggest risk, however, is the upcoming military enlistment of BTS members. Under Korean law, all able-bodied Korean men need to serve in the military for 18 to 22 months.

The eldest, Kim Seok-jin, is 27 and would have to enlist before the end of 2021.

With other members likely to follow suit in the coming years, the loss of Big Hit’s biggest revenue source could put a dent on the agency’s profitability and growth.

Big Hit in 2018 renewed its contract with the seven members until the end of 2024.

Pledis Entertainment, a local entertainment agency acquired by Big Hit in May, was only factored into its parent’s half-year financial statements for the month of June. Pledis generated 80.5 billion won in revenue last year, or 13.7 percent of what Big Hit made.

Big Hit has five other idol groups under its wing, including the boyband Tomorrow X Together and the Pledis boy groups Seventeen and NU’EST. It also has a girl group GFriend from Source Music, another local label that Big Hit acquired last year.

The three agencies together have debuted 50 artists, with 105 artists currently in training, according to Big Hit.

By Pulse

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]