SM Entertainment, led by CEOs Jang Cheol-hyuk and Tak Young-jun, is set to introduce a new boy group this year.
Through two videos released on their official YouTube channel, SM Entertainment announced their evolution into a 'Multi-Creative' system centered around 'people' and 'artists,' building on the 'SM 3.0' system established over the past three years. The company outlined key agendas for future growth, including IP strategy, business and global strategies, and management and investment strategies. The presentation was led by co-CEOs Jang Cheol-hyuk and Tak Young-jun, along with Chief A&R Officer Lee Sung-soo, who shared the company's future direction with shareholders and fans.
'Multi-Creative' System: A New Era of Artist-Centric Production
Building on the success of its existing five multi-production systems, SM Entertainment has announced the introduction of a 'Multi-Creative' system. CEO Tak Young-jun stated, "We aim to achieve growth and change simultaneously by exploring and assigning the best creators centered around our artists. As the artists' worldviews evolve, new artistic grammar is required, and we will flexibly build a creative lineup optimized for project goals to achieve the most complete transformation of our artists."
Additionally, the debut of a new boy group in 2026 was confirmed. "A boy group is set to debut in 2026, with members from the male trainee team SMTR25 being considered. They will be gradually introduced through the variety show 'Reply High School' early this year," explained Tak.
The company also detailed its global IP strategy. "While focusing on SM's creative capabilities, we plan to collaborate actively with strong local partners for production and marketing," said Tak. "We are in discussions with Tencent Music Entertainment in China, True in Thailand, and multiple partners in Japan."
Strengthening Global A&R Infrastructure Through Synergy with Publishing Subsidiary
SM has established an A&R system optimized for each artist and has strengthened its global A&R infrastructure through organic collaboration and synergy with its music publishing subsidiary, KMR (Creation Music Rights).
Lee Sung-soo, CAO, stated that KMR has continuously enhanced SM's A&R system and network. "KMR has secured a global repertoire base by expanding to the U.S. in 2025, following Korea and Europe, and has signed exclusive or sub-publishing contracts with over 370 composers, holding a catalog of over 7,000 key K-Pop songs," he said. "Through KMR, SM aims to become Asia's largest and best publishing company within five years, growing into a hub for intellectual property (IP)."
The company also mentioned upgrading its A&R system using AI technology, analyzing thousands of songs accumulated over 30 years to recommend music most suitable for each artist to fans.
Enhancing Artist Protection and Expanding Fan Services
SM also discussed policies to enhance artist protection and improve fan satisfaction. CEO Jang Cheol-hyuk noted, "Since the implementation of KWANGYA 119, approximately 300,000 reports have been received over two years, with a response rate of 99.8%. From 2026, we plan to share updates on legal actions and reports with fans quarterly." He added, "We will gradually implement measures to enhance fan experiences."
Expanding Concerts, Merchandise, and Platform Business with Kakao AI Synergy
SM outlined its business and investment strategies to respond to changing fan consumption patterns. CEO Jang Cheol-hyuk stated, "Concerts play a crucial role in the evolving K-Pop industry trends, and we strive to provide optimized concert experiences for fans in each region." He added, "As secondary businesses based on artist IP continue to grow, SM plans to design merchandise as a medium to experience the artist's worldview, leading new trends and expanding into lifestyle merchandise."
Additionally, "We have incorporated DearU, which operates the fan communication platform 'Bubble,' as a connected subsidiary and plan to offer diverse K-content experiences to fandoms through collaborations with global platforms," he mentioned.
Regarding AI, a key future driver, CEO Jang Cheol-hyuk stated, "SM has the advantage of leveraging the AI technological capabilities of its parent company, Kakao, and we expect strong synergy at the intersection of rapidly changing K-Pop and AI." He added, "We will actively seek M&A opportunities in the music and related industries and invest capital to accelerate growth more aggressively than in the past three years."
Concluding the video, co-CEOs Jang Cheol-hyuk and Tak Young-jun expressed, "SM NEXT 3.0 aims to achieve boundaryless expansion by combining creative innovation centered on technology, platforms, and people with the musical essence that SM excels at. We will prove our position as a global leading company through substantial growth and investment."
Reporter Kim Ji-won, TenAsia one@tenasia.co.kr