SEOUL, South Korea — Shares of HYBE, South Korea's largest K-pop entertainment company and the agency behind BTS, fell nearly 2% on Tuesday, giving back gains from the previous session and keeping the stock near its lowest level in a year.

HYBE stock closed at 158,700 won on the Korea Exchange, down 3,200 won, or 1.98%, from Monday's close of 161,900 won.

The decline came without any specific negative disclosure from the company. Korean financial media attributed the drop to weaker sentiment across the entertainment sector and possible short-term profit-taking after the stock rose more than 3% on Monday.

Tuesday's close left HYBE just above its 52-week low of 153,900 won and far below its 52-week high of 405,500 won. The stock has lost roughly 30% of its value over the past year, and the company's market capitalization now stands at about 6.7 trillion won ($4.9 billion).

The slide in HYBE's shares stands in sharp contrast to the broader South Korean market, which has surged to record levels this year on booming demand for AI memory chips. The benchmark KOSPI index closed down 0.27% at 6,870.81 on Tuesday, as foreign selling, surging U.S. Treasury yields and high oil prices weighed on sentiment.

Record results, falling shares

HYBE's share price weakness has persisted despite strong financial results powered by the return of BTS, the company's biggest act.

In July, HYBE reported second-quarter revenue of 1.45 trillion won,........

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