SEOUL -- When BTS sent shock waves around the world by saying they were going on hiatus, the K-pop industry as a whole was shook as the announcement exposed fissures lurking beneath the glossy veneer of the idol business.
"Somehow, it's become my job to be a rapping machine," BTS leader RM said Tuesday in a video posted on the group's YouTube channel, which boasts 67.9 million subscribers. "Right now, we've lost our sense of direction. I just want to take some time to think and then return."
BTS has long used music and social media to share candid thoughts and connect with fans around the world, known as the BTS Army.
The group has become the unofficial voice for both young people and Asians. BTS delivered a speech at the U.N. General Assembly last September and met with U.S. President Joe Biden at the White House this month.
The morning after the YouTube video was posted, Bighit Music, the label under BTS's talent agency Hybe, released a statement, saying, "BTS will begin a new chapter by pursuing team and individual activity in parallel."
Bighit appeared to be walking back BTS's earlier announcement by saying group projects would remain on the horizon, something that would be crucial to Hybe's books as the boy band accounts for 70% of its revenue.
Hype reported 1.26 trillion won ($970 million) in sales for 2021, generating an operating profit of 190.3 billion won. Most of the sales from music, concerts and merchandise is generated by BTS.
Without BTS, Hybe would lose 750 billion won in revenue, according to Seoul-based Hana Financial Investment. Hybe's share price tanked nearly 25% at the close of trading Wednesday.
Although other Hybe-signed acts like Enhypen are popular in their own right, BTS's absence would leave large shoes to fill. BTS serves as the sweetener for Hybe's Weverse social media platform that fans worldwide can access. Weverse would be in danger of losing pull if BTS ceases group activities.
Hybe has taken numerous steps to alleviate the company's financial dependency on any one group. The agency is developing the next big thing after BTS as South Korea's military draft, a rite of passage for the country's male artists, was set to inevitably break up the band at some point.
BTS members took to YouTube to announce the group's hiatus on June 14. (Image from YouTube video) BTS's oldest member, Jin, is due to be conscripted by Dec. 31. With that deadline looming, there was speculation the group would go on hiatus sometime this year.
Because BTS is suspending activities earlier than expected, Hybe is now tasked with pushing forward its strategy of connecting artists with fans on its platform and generating earnings.
BTS's announcement will not only affect Hybe, but will spill over to the entire K-pop industry as well. RM went as far as to touch on the structural issues of the music-entertainment scene.
"The problem with K-pop and the whole idol system is that they don't give you time to mature," he said.
There are four major talent agencies in South Korea, including Hybe, that develop and manage musical artists. Each agency has hopefuls go through a rigorous trainee system for years before they debut as performers. The agencies shoulder the costs of training, which are then recouped after the artists officially launch their careers.
Although the agencies win plaudits for devising a successful formula for creating idols, artists are frequently compelled to keep tight schedules so the agencies can recoup their investments. There are also cases where artists become targets of psychologically damaging character assassination campaigns.
BTS's hiatus strikes a blow to this scheme of mass-producing artists. This news may lead to a turning point in the K-pop industry, where artists are known to be nurtured and consumed in all-too-quick cycles.