Korean agency SM Entertainment presented its new growth blueprint, “SM NEXT 3.0,” marking a significant step forward as the company enters the next phase following its 30th anniversary.

SM Entertainment manages K-pop artists such as NCT, EXO, RIIZE, Aespa, Hearts2Hearts, TVXQ, Super Junior, Girls' Generation, SHINee, and Red Velvet.

SM Entertainment outlined its vision in two videos uploaded on YouTube that presented key strategic pillars that will shape the company’s future, including its IP strategy, business and global expansion plans, as well as management and investment strategies. 

The presentation was led by Co-CEOs Jang Cheol-hyuk (aka Daniel Jang) and Tak Young-jun (aka Dmitry YJ Tak) , alongside Chief A&R Officer Lee Sung-soo (aka Chris Lee), who shared the company’s long-term strategic direction with shareholders and fans.

Multi-Creative

Building on the achievements of its five-unit multi-production system, SM Entertainment announced the introduction of an enhanced Multi-Creative structure. 

It is designed to place artists at the core of the creative process, dynamically assembling the most suitable creators for each project. 

“By placing artists at the center and flexibly assigning the most optimal creative teams, we aim to achieve growth and transformation simultaneously,” said Tak. “As each artist’s universe evolves, it calls for new artistic languages. Rather than operating within a fixed production hierarchy, we will build flexible, project-optimized creative lineups that allow every artist’s transformation to be realized with the highest level of precision and quality.”

SM Entertainment confirmed that it will debut a new K-pop boy band this year. 

“A new boy group is scheduled to debut in 2026. Members from the male trainee team SMTR25 will be among the candidates, and they will be introduced progressively through the variety program ‘Reply High School’ which is scheduled to air early this year,” said Tak. 

The company further detailed its global localized IP strategy. Tak said that “While SM’s creative excellence will remain the foundation of everything we do, we are also strengthening our presence in key markets through close collaboration with leading local partners.” 

“In China, we are working with Tencent Music Entertainment; in Thailand, with True; and in Japan, we are currently in discussions with multiple partners. Our focus is on creating locally resonant IP while maintaining SM’s creative identity,” he added. 

Enhancing SM’s global A&R infrastructure 

SM has built artist-optimized A&R systems and has continued to strengthen its global A&R infrastructure through close collaboration and synergy with its music publishing subsidiary, KMR (Kreation Music Rights).

Lee said that SM has consistently reinforced its A&R systems and networks by leveraging KMR. 

“KMR has established a strong foundation for a global repertoire by expanding from Korea and Europe into the United States in 2025. Today, it maintains exclusive or sub-publishing agreements with more than 370 composers worldwide and manages a core K-pop catalog of over 7,000 songs,” he said. 

He added, “Through KMR, our goal within the next five years is to build Asia’s largest and most respected publishing company, and on that foundation, to grow further as a hub for intellectual property (IP) and a leader shaping the future of the music market.”

Lee also outlined plans to further upgrade SM’s A&R systems through AI, noting that artificial intelligence could be used to analyze tens of thousands of songs accumulated over SM’s 30-year history to recommend tracks with a high level of suitability for each artist, helping fans discover music that better aligns with their individual tastes.

Strengthening artist protection 

SM also addressed its ongoing efforts to protect artists and enhance fan satisfaction.

“Over the past two years since the launch of Kwangya 119, we have received approximately 300,000 reports with a response rate of 99.8%. Starting in 2026, we will provide quarterly updates to fans on our legal actions, as we continue to proactively protect our artists and respond decisively to false rumors and malicious attacks,” said Jang.

He added that SM will continue to roll out initiatives in stages to further strengthen the overall fan experience.

Expansion of concert, merchandise, and platform businesses 

SM also unveiled business and investment strategies in response to evolving fan consumption patterns.

Jang said, “Live performances play a critical role in the evolving K-pop industry, and we are focused on delivering concert experiences optimized for fan communities in each region.”

“As artist IP–based secondary businesses continue to grow, SM is positioning merchandise not merely as products, but as a medium through which fans can experience an artist’s universe. We are leading new trends in this space and plan to expand further into lifestyle merchandise going forward,” he said. 

Jang highlighted SM’s commitment to cross-industry collaboration, stating that such efforts will enable boundary-less partnerships across multiple sectors.

In addition, SM noted that it has brought DearU, the operator of the fan communication platform Bubble, into its group as an affiliated subsidiary, and will continue to collaborate with global platforms to deliver diverse K-content experiences to fans worldwide.

Addressing AI as a key future growth driver, Jang stated that “SM has a distinct advantage in being able to leverage the AI technological capabilities of its parent company, Kakao, and we see strong potential for meaningful synergy at the intersection of a rapidly evolving K-pop landscape and AI.”

“We will pursue M&A opportunities within music and related industries more actively than in the past three years, and increase capital investment to accelerate growth,” he said. 

Jang and Tak emphasized that “SM NEXT 3.0 represents the borderless expansion of K-pop, built on SM’s musical core and strengthened by the flexible integration of technology, platforms, and people-centric creative innovation. Through disciplined, sustainable growth alongside bold, forward-looking investments, we will continue to shape the future of the global entertainment market.”