[Photo provided by SM Entertainment]

 

SM Entertainment (co-CEOs Jang Cheol-hyuk and Tak Young-jun) unveiled its blueprint for a new leap forward, ‘SM NEXT 3.0,’ on January 20, marking a new chapter beyond the company’s 30th anniversary.

 

On this day, SM released two video presentations on its official YouTube channel, outlining its vision to evolve the SM 3.0 framework, established over the past three years, into a “Multi-Creative” system that places people and artists at the core. The presentation laid out core agendas including IP strategy, business and global expansion plans, and management/investment direction. Co-CEOs Jang Cheol-hyuk and Tak Young-jun, along with Chief A&R Officer Lee Sung-soo, personally presented the company’s long-term strategy to shareholders and fans.

 

From ‘Multi-Production’ to ‘Multi-Creative’: Centering People and Artists

SM announced the adoption of a new Multi-Creative system, an evolution of its existing five-unit Multi-Production structure. CEO Tak Young-jun explained, “By centering on our artists and allocating the most optimal creative teams to each project, we aim to achieve both growth and transformation. As our artists’ narratives evolve, they require new creative approaches. We will build flexible, project-specific creative lineups to deliver the highest-quality results.”

 

He also officially announced the debut of a new boy group in 2026: “A new male group will debut this year. Members of the male trainee team SMTR25 will be considered, and they will be gradually introduced through an upcoming variety show titled ‘Reply High School.’”

 

In addition, SM revealed its localized IP strategy. Tak stated, “While maintaining SM’s creative DNA at the center, we will actively collaborate with strong local partners for production and marketing.” Partners include Tencent Music Entertainment in China, True Corporation in Thailand, and multiple partners currently in discussions in Japan.

 

Strengthening Global A&R Infrastructure Through Publishing Synergy

SM has built optimized A&R systems for each artist, enhancing global infrastructure through close collaboration with music publishing subsidiary KMR (Kreation Music Rights).

 

CAO Lee Sung-soo shared that KMR has expanded from Korea and Europe into the U.S. in 2025, securing a foundation for a global catalog. “KMR now manages exclusive or sub-publishing contracts with over 370 composers and owns a core K-pop catalog of more than 7,000 songs,” he said. “Our goal is to make KMR Asia’s largest and most competitive publishing company within five years and grow it into an IP hub.”

 

He also mentioned plans to upgrade the A&R system using AI. “By analyzing tens of thousands of songs accumulated over 30 years, our AI will recommend tracks best suited to each artist, enhancing fan experiences.”

 

Strengthening Artist Protection and Fan Services

CEO Jang Cheol-hyuk emphasized SM’s efforts in artist protection and fan engagement. “Since launching KWANGYA 119, we’ve received 300,000 reports with a 99.8% response rate. Starting in 2026, we’ll share quarterly updates on lawsuits and response progress with fans,” he said. “We’re also working on expanding fan experience programs step by step.”

 

Expanding Concerts, MD, Platforms, and Kakao AI Synergy

 

SM outlined strategies for adapting to evolving fandom consumption patterns. “Concerts play a vital role in the changing K-pop industry,” said Jang. “We aim to provide optimized concert experiences for fans in each region.”

He also revealed MD (merchandise) expansion plans: “MD is no longer just merchandise, it’s a medium for experiencing our artists’ worlds. We plan to lead new trends and expand into lifestyle MD collaborations.”

 

Additionally, Jang announced that SM had acquired a connected subsidiary relationship with DearU, which operates the fan communication platform bubble. “We plan to offer a diverse K-content experience through collaborations with global platforms.”

 

As for AI, Jang emphasized SM’s advantage through parent company Kakao’s AI capabilities. “We expect strong synergy where K-pop meets AI. We will be more aggressive in M&A and capital investments than in the past three years to accelerate growth,” he added.

 

Co-CEOs Jang Cheol-hyuk and Tak Young-jun concluded by stating,

“SM NEXT 3.0 is about combining SM’s musical excellence with technology, platforms, and human-centered creative innovation. Through focused growth and investment, we aim to solidify our status as a global leading company.”