Seoul, Korea – K-Pop powerhouse SM Entertainment has unveiled its ambitious blueprint for the future, ‘SM NEXT 3.0,’ marking a strategic evolution beyond its 30th anniversary. This comprehensive vision, revealed on **January 20**, outlines a transformation into a ‘Multi-Creative’ system, prioritizing artists and people while leveraging cutting-edge technology.
Presented by co-CEOs **Jang Cheol-hyuk** and **Tak Young-jun**, alongside CAO **Lee Sung-su**, ‘SM NEXT 3.0’ is built upon the successful ‘SM 3.0’ system established over the past three years. It signals a shift towards dynamic, artist-centric creative processes, bolstered by enhanced IP strategies, aggressive global expansion, and innovative management and investment approaches.
The core of this evolution is the ‘Multi-Creative’ system, designed to elevate the existing five multi-production centers. CEO **Tak Young-jun** emphasized, “We aim to achieve both growth and change by placing artists at the center and exploring and assigning the most optimal creators. As an artist’s worldview evolves, new artistic grammars are required. We will flexibly build creative lineups optimized for project goals to realize the artist’s transformation in the most complete way.”
Among the most anticipated announcements was the official confirmation of a **new boy group debuting in 2026**. The company stated that members of their male trainee team, **SMTR25**, would be considered, with a phased introduction expected through a variety show titled ‘Respond High School’ (응답하라 하이스쿨) early this year.
SM also detailed its expanded global IP strategy, focusing on active collaboration with strong local partners. Plans include:
- 🇨🇳 **China**: Discussions underway with **Tencent Music Entertainment**.
- 🇹🇭 **Thailand**: Partnering with **True**.
- 🇯🇵 **Japan**: Engaging with multiple local partners.
This localized approach, combined with SM’s creative prowess, aims to drive production and marketing tailored to regional markets.
Further solidifying its musical infrastructure, SM has established an optimized A&R system and strengthened its global reach through synergistic collaboration with its music publishing subsidiary, **KMR (Kreation Music Rights)**. CAO **Lee Sung-su** highlighted KMR’s impressive growth:
- 🌍 **Global Expansion**: KMR has expanded from Korea and Europe, with plans to enter the **US by 2025**.
- 🎶 **Extensive Catalog**: Boasting over **370 composers** under exclusive or sub-publishing contracts.
- 📈 **Rich Repertoire**: Holding over **7,000 key K-Pop tracks**.
SM’s ambition for KMR is clear: to become **Asia’s largest and best publishing company within five years**, establishing itself as a global IP hub.
In a move reflecting its tech-forward vision, SM also revealed plans to upgrade its A&R system using **AI technology**. This includes analyzing tens of thousands of accumulated song data from the past **30 years** to recommend highly suitable tracks for artists to their fans – a truly innovative application.
Artist protection and fan satisfaction remain paramount. CEO **Jang Cheol-hyuk** reported on the success of ‘KWANGYA 119,’ which handled **300,000 reports** over approximately **two years** with an impressive **99.8% response rate**. Starting **2026**, SM plans to share quarterly updates on legal actions and reports with fans, further enhancing transparency and engagement.
Responding to evolving fandom consumption patterns, SM detailed its business and investment strategies. Concerts are recognized as a crucial aspect of the K-Pop industry, with efforts to optimize experiences for regional fan bases. The company aims for MD (merchandise) to transcend simple products, becoming a medium through which fans can experience an artist’s worldview, leading the trend and expanding into **lifestyle MD** through cross-industry collaborations. The integration of **DearU (Bubble)** as a connected subsidiary further strengthens fan communication, promising diverse K-content experiences through global platform collaborations.
A key driver for the future is the strategic use of AI. CEO **Jang Cheol-hyuk** highlighted SM’s advantage in leveraging the AI technological capabilities of its parent company, Kakao, expecting strong synergy at the intersection of K-Pop and rapidly evolving AI. SM also plans to aggressively pursue **M&A opportunities** within the music and related industries, deploying capital to accelerate growth more actively than in the past three years.
SM’s ‘NEXT 3.0’ isn’t just a vision; it’s a meticulously planned blueprint for sustainable, tech-driven growth that will undoubtedly redefine the K-Pop industry’s future. The integration of AI and global strategic partnerships truly sets a new standard for industry evolution.
Co-CEOs **Jang Cheol-hyuk** and **Tak Young-jun** concluded by stating, “SM NEXT 3.0 is about achieving boundless expansion by combining technological and platform innovations, and people-centric creativity with the musical essence that SM does best.” We are poised to witness SM Entertainment solidify its position as a global leading enterprise through robust growth and strategic investments.
Editor: Alex Kim 💻
