Kakao and SM Launch North America Integrated Corporation... Targeting Global Market with Synergy

Kakao Entertainment announced on the 1st that it will launch a joint local corporation in North America with SM Entertainment. The plan is to create synergy by combining SM Entertainment's global intellectual property (IP) and production capabilities with Kakao Entertainment's distribution network and multi-label system.

First, through the launch of the North American joint corporation, the global expansion of artists under both companies will be accelerated. They will also actively engage in the development and investment of new intellectual property (IP). To support the global activities of artists under both companies, a systematic global 360-degree management system will be established, providing comprehensive support for artists' album releases, performances, broadcasts, promotions, and other local activities worldwide. Efforts will also focus on strengthening local networks, including forming partnerships with leading global entertainment companies.

They will concentrate their capabilities on discovering local North American artists and IP as well. Various measures will be explored to discover local artists, and strategic investments will be made to develop and discover global IP through partnerships with overseas labels. Collaboration with local partners such as global record companies and distribution platforms will be expanded to strengthen distribution competitiveness within the global music market.

The head of the joint corporation will be Jang Yoon-jung, CEO of Kakao Entertainment America. Jang, who serves as Kakao Entertainment's Global Strategy Officer (GSO) and SM Entertainment's Chief Business Officer (CBO), has a strong network with key partners in the global music industry. The plan is to combine the strengths of both companies to create synergy in global business. Jang stated, "We will prove the growth potential of Kakao Entertainment Music's business, which encompasses music and artist IP planning, production, and distribution, in the global market."

Both companies will integrate the roles of the existing Kakao Entertainment America and SM Entertainment USA into the North American joint corporation. To this end, they plan to quickly complete the detailed procedures within this year.