Photo Courtesy of SM Entertainment (SM Entertainment Co-CEOs – Left: Dmitry YJ Tak; Right: Daniel Jang)
SM Entertainment Co., Ltd. (“SM”) has today unveiled its new growth blueprint, “SM NEXT 3.0”, marking a major step forward as the company enters the next chapter following its 30th anniversary.
Through two newly released videos on its official YouTube channel [Part 1; Part 2], SM detailed their vision to evolve beyond the “SM 3.0” system – successfully implemented over the past three years – into a “Multi-Creative” structure that places people and artists at the centre of its creative ecosystem. The announcement outlined strategic pillars that set to 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 Daniel Jang and Dmitry YJ Tak, alongside Chief A&R Officer (CAO) Chris Lee, who shared SM’s long-term strategic direction with shareholders and fans alike.
From Multi-Production to Multi-Creative: A People- and Artist-Centric Evolution
Building on the success of its five-unit Multi-Production system, SM revealed plans for an upgraded Multi-Creative structure. One designed to put artists at the core of the creative process. “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 also officially confirmed exciting news for fans: the debut of a new boy group for 2026. “A new boy group is scheduled to debut in 2026,” Tak said. “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.
Looking beyond Korea, SM further shared its global plans as well. “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.” He continued, “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.”
Enhancing SM’s Global A&R Infrastructure Through Synergy With Its Music Publishing Subsidiary
SM has developed artist-focused A&R systems and continues to strengthen its global A&R infrastructure through close collaboration and creative synergy with its music publishing subsidiary, KMR (Kreation Music Rights).
Lee explained that SM has consistently reinforced its A&R systems and networks by leveraging KMR. He stated that “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 catalogue of over 7,000 songs.”
Lee 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.”
He also outlined plans to further upgrade SM’s A&R systems through AI, noting that artificial intelligence could be used to analyse 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 and Expanding Fan Services
SM also addressed its ongoing efforts to protect artists and enhance fan satisfaction.
Jang stated, “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 rumours and malicious attacks.”
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, and Full-Scale Activation of Kakao AI Synergies
SM also outlined its business and investment strategies in response to evolving fan consumption patterns.
Jang commented, “Live performances play a critical role in the evolving K-pop industry, and we are focused on delivering concert experiences optimised for fan communities in each region.”
He continued, “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.”
Jang also 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: “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.”
He also added, “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.”
Concluding the video, 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.”
