Details from Big Hit Entertainment’s registration statement for their initial public offering (IPO) have been made available through the online Data Analysis, Retrieval and Transfer System provided by the Financial Supervisory Service, and the details are creating a buzz.
As per military requirements, all able Korean men born in 1992 must enlist before this year ends, Jin was born in 1992 and many assumed he has to leave for the military by the end of this year.
Recently, there were new discussions regarding granting idols the ability to extend their military service for two years, the new reform would allow pop culture artists with high cultural and economic contributions to postpone their enlistment for up to two years, so they could serve at 30 instead of 28 (according to the current laws). More on that here.
Through its initial public offering, Big Hit discusses the risks of investing in a company whose members must enlist in the upcoming years. Big Hit stated,
“It has been determined 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.”
Big Hit also stated that they’re preparing many ways so the company could expand the ratio of revenue by creating products or services that don’t require direct participation from the artists who could go on hiatus due to injury, unforeseen circumstances or military enlistment. The products include merchandise, pre-produced albums, and video content. This would reduce the drop of sales.
Related: Contract Expiration Dates Of Big Hit Label Artists Revealed [Ft. BTS, SEVENTEEN, TXT, GFRIEND & More]