SM ENTERTAINMENT (represented by JANG CHEOL-HYUK and TAK YOUNG-JUN) unveiled on January 20 its new master plan for a major leap forward, titled “SM NEXT 3.0”, on the occasion of surpassing its 30th anniversary since founding.
On that day, SM ENTERTAINMENT released two videos on its official YouTube channel and announced its vision of evolving toward a “multi-creative” system centered on people and artists, building on the SM 3.0 system solidly established over the past three years. The company also presented the key strategic pillars set to guide its future, including IP strategy, commercial and international strategies, as well as management and investment strategies. Co-CEOs JANG CHEOL-HYUK and TAK YOUNG-JUN, along with LEE SUNG-SOO, CAO (Chief A&R Officer), spoke directly to outline the company’s overall vision for shareholders and fans.
From “multi-production” to “multi-creative”: people- and artist-centered production innovation
Based on the results achieved through its five-unit multi-production system, SM ENTERTAINMENT announced the introduction of the Multi-Creative system, an evolution to a higher level. CEO TAK YOUNG-JUN explained:
“By placing the artist at the center and seeking out and assigning the most suitable creators, we aim to achieve growth and transformation simultaneously. As each artist’s universe evolves, new artistic languages become necessary. That is why we will flexibly build optimized creative teams according to the direction of each project, in order to support artistic transformations with the highest level of completion.”
In addition, SM ENTERTAINMENT officially confirmed the debut of a new boy group in 2026. TAK YOUNG-JUN stated:
“A boy group will debut in 2026. Members of the SMTR25 male trainee team will also be part of the candidates, and they will be gradually introduced to the public starting early this year through the variety show “Reply: High School”.”
The local-to-global IP strategy was also detailed. TAK YOUNG-JUN said:
“While relying on SM’s creative capabilities, we will conduct production and marketing in active collaboration with strong local partners. In China, we are working with Tencent Music Entertainment; in Thailand, with True; and in Japan, with several partners.”
Strengthening global A&R infrastructure through synergies with the publishing subsidiary
SM ENTERTAINMENT has implemented an optimized A&R system tailored to each artist and strengthened its global infrastructure through organic and synergistic collaboration with its music publishing subsidiary KMR (CREATION MUSIC RIGHTS).
LEE SUNG-SOO, CAO, explained that SM ENTERTAINMENT has continuously reinforced its A&R system and network through KMR:
“After Korea and Europe, KMR expanded to the United States in 2025, thereby establishing a global repertoire base. We have signed exclusive or sub-publishing contracts with more than 370 composers and hold over 7,000 key titles in the K-pop catalog.”
He added: “Through KMR, SM aims within five years to own the largest and best publishing company in Asia and to become a major hub for intellectual property (IP).”
It was also mentioned that AI will analyze the tens of thousands of tracks accumulated by SM ENTERTAINMENT over 30 years in order to recommend to fans the titles with the strongest fit for each artist, illustrating the evolution of the A&R system through artificial intelligence technologies.
Strengthening artist protection and improving fan services
SM ENTERTAINMENT also addressed its policies regarding artist protection and improving fan satisfaction. CEO JANG CHEOL-HYUK stated:
“Since the implementation of KWANGYA 119 about two years ago, approximately 300,000 reports have been received, with a response rate reaching 99.8%. Starting in 2026, we will prepare quarterly updates shared with fans on the progress of lawsuits and reports.”
He added: “We plan to gradually implement measures aimed at strengthening the fan experience.”
Expansion of concerts, merchandising, and platform businesses, and acceleration of synergies with Kakao’s AI
SM ENTERTAINMENT also detailed its commercial and investment strategies in response to changes in fandom consumption patterns. JANG CHEOL-HYUK explained: “Concerts play an essential role in current trends within the K-pop industry, and we strive to offer stage experiences optimized for each regional fandom.” He continued: “As secondary activities based on artist IP continue to grow, SM designs merchandising not as simple products, but as mediums that allow fans to experience the artists’ universe. Through this, we aim to create new trends and expand these activities into the lifestyle domain.”
He also mentioned:
“We have integrated DearU, operator of the fan communication platform Bubble, as an affiliated subsidiary, and we will offer diverse K-content experiences to fandoms through collaborations with global platforms.”
Regarding AI, a key driver of the future, JANG CHEOL-HYUK stated:
“SM ENTERTAINMENT has the advantage of being able to leverage the AI technological capabilities of its parent company Kakao, which allows us to anticipate strong synergies at the intersection of K-pop and AI.”
He added: “We will more actively than in the past three years seek opportunities for mergers and acquisitions (M&A) in music and related industries, and invest capital to accelerate our growth.”
In conclusion, co-CEOs JANG CHEOL-HYUK and TAK YOUNG-JUN stated:
“SM NEXT 3.0 aims to achieve borderless expansion by combining the musical essence in which SM excels with technology, platforms, and human-centered creative innovation. Through solid growth and strategic investments, we will prove our position as a leading company on a global scale.”
Journalist: Shawn
Translator: Shawn
Source: SM Entertainment
