Big Hit Reveals Jin’s Enlistment Can Be Delayed Until End Of 2021 + BTS Members Received Shares In The Company
Big Hit Entertainment’s registration statement for their initial public offering (IPO) has been revealed through the online Data Analysis, Retrieval and Transfer System provided by the Financial Supervisory Service.
The document includes statements on the BTS members’ mandatory military service as well as the number of shares they own in the company.
In a page detailing the risks of investing in the company, Big Hit stated, “BTS consists of members born between 1992 and 1997 who are required to enlist as active duty soldiers. It has been assessed that it will be possible for the oldest member Kim Seok Jin (Jin) to delay his enlistment until the end of 2021, based on the military service law.”
The statement adds, “To prepare for the risk of artists suspending their activities due to military enlistment, illnesses, or accidents, the company is continuing to expand the ratio of revenue earned through products that do not require direct participation from artists, such as merchandise and licensing and video content. To minimize the risk of reduced sales due to our core artists’ impending hiatus from issues including military enlistment, we are reviewing a wide variety of business options such as pre-produced albums and video content as well as a flexible operation of artists who are able to promote.”
It was also revealed through the registration statement that Bang Si Hyuk, Big Hit Entertainment’s biggest shareholder, gave the seven BTS members 68,385 shares each. If the public offering price is set at the maximum amount requested by Big Hit, which was 135,000 won (approximately $114), each member will own shares valued at a total of 9.23 billion won (approximately $7.78 million).
Big Hit Entertainment stated that the purpose of gifting shares to the members was to “strengthen their long-term cooperative relationship with core artists and to boost high morale by sharing the results of the company’s growth.”