SM Entertainment marked its 30th anniversary with a major shake-up, unveiling the mid-to-long-term vision 'SM NEXT 3.0' and signaling another bold transformation.
On the 20th, SM released two videos on its official YouTube channel, laying out plans to evolve the 'SM 3.0' system built over the past three years into a people- and artist-centered 'Multi-Creative' framework. Co-CEOs Jang Cheol-hyeok and Tak Young-jun, along with CAO (Chief A&R Officer) Lee Sung-su, personally presented the company's future strategy to shareholders and fans.
The newly introduced Multi-Creative system advances SM's previous five-unit multi-production model. CEO Tak explained, "We'll center every project around the artist and flexibly assign the most suitable creators," adding, "We'll design creative grammar that matches each artist's universe and evolution to maximize quality."
The rookie pipeline is now official. SM teased the debut of a new boy group in 2026 and noted that members of the male trainee team SMTR25 could also be contenders. They will be introduced step by step through the variety content 'Reply High School'.
The global strategy also took shape. SM said it will expand IP through local partnerships as a core pillar, noting it is working with Tencent Music Entertainment in China, True in Thailand, and multiple partners in Japan. The plan is to strengthen hyper-local strategies from production to marketing.
In A&R, the music publishing subsidiary Creation Music Rights (KMR) has been expanding its global footprint. CAO Lee shared, "KMR has secured a global repertoire base, confirming a U.S. expansion in 2025 after Korea and Europe," adding, "We've built a network of over 370 songwriters and secured a K-pop catalog of more than 7,000 songs." SM also set a goal to become Asia's largest publishing company within five years.
SM is also upgrading its A&R system with AI. By analyzing three decades of song data, the company is building a structure that proposes music optimized for each artist.
Artist protection and enhanced fan experience are key pillars. CEO Jang revealed, "Since introducing KWANGYA 119, we've received over 300,000 reports in about two years, with a 99.8% response rate," adding, "Starting in 2026, we'll transparently share quarterly updates on legal complaints, reports, and responses."
On the business and investment front, concerts and IP-driven secondary businesses will power growth. SM will expand MD from simple merchandise to experiential content that lets fans enter each artist's universe, with plans to move into lifestyle categories as well. The company will also bring Dear U, operator of the fan communication platform Bubble, in as a consolidated subsidiary to strengthen collaborations with global platforms.
Addressing AI and M&A, CEO Jang said, "We'll actively leverage our parent company Kakao's AI capabilities to lead the convergence of K-pop and technology," adding, "We will pursue more aggressive investments and acquisitions across music and adjacent industries than in the past three years."
Wrapping up, the co-CEOs stressed, "SM NEXT 3.0 is a strategy that fuses technology, platforms, and people-centered creative innovation on the bedrock of music," vowing, "We will prove our status as a leading global entertainment company through sound, sustainable growth."