Position Solidified Amid Global K-pop Boom
"Discovering Locally Tailored Groups... Strengthening the Label"
Expanding IP Business with Platforms like Bubble for Japan
TVXQ renewed their contract with SM Entertainment on the 2nd. It was a predictable step. To celebrate their 20th anniversary of entering the Japanese market this year, they will release a commemorative album. They will also hold a live tour. The finale will be held at Tokyo Dome on the 27th. It is a familiar stage for TVXQ. They have already performed there thirty times. Including Tokyo Dome, they have held eighty-nine dome concerts across Japan. All of these are the highest records ever achieved by an overseas artist.
This is the result of establishing a foundation by entering Japan early. SM Entertainment established SM Entertainment Japan in April 2001. Leveraging the 'Culture Technology' promoted by the headquarters, they appealed K-pop to the local market. They focused intensively on monetizing intellectual property (IP) and expanding global business. The approach was closer to localization than the Korean system. Artists like TVXQ and BoA went through the same procedures as local artists. Kim Dong-woo, CEO of SM Entertainment Japan, said, "Japan is the second largest music market in the world," adding, "By consistently promoting activities with Japanese songs, we were able to gain recognition for our skills and establish our position."
Recently, with the global popularity of K-pop, their position has solidified. A foundation has been established where even rookie artists actively promote locally. In August, they will hold a 30th anniversary concert at Tokyo Dome and conduct an NCT 127 tour in major Japanese cities. They will also have aespa perform at 'Summer Sonic 2025,' Japan's largest music festival held in Tokyo in August. CEO Kim stated, "Due to the influence of K-pop, perceptions and values regarding local artists' overseas expansion have greatly changed," and "there seems to be great potential for business expansion."
The plan also includes locally tailored groups like JO1 and INI, discovered by CJ ENM through Lapone Entertainment. CEO Kim said, "It is currently in the planning stage," adding, "We are strengthening our label to leap forward as a local entertainment company with SM Entertainment's unique DNA."
Local insiders agree that such projects can lead a new trend. This is because they have already elevated artists from various countries to stardom and have continuously grown in the Japanese market. Insider A said, "They have successfully implemented 'Culture Technology' through a systematic process that connects casting, training, producing, and marketing," adding, "There is nothing lacking in writing a new growth story." Insider B also said, "Compared to other Korean entertainment companies, entering Japan first gives an advantage in new businesses or business expansion."
Some businesses have already borne fruit. A representative example is 'Bubble for Japan,' launched in June last year by Dear U, a subsidiary of SM Entertainment, together with local company M-Up Holdings. It is a platform where artists active in Japan communicate one-on-one with fans. Within just three months, fifty-six artist teams joined. CEO Kim said, "Japan has a long-standing fan club culture with high loyalty to artists," adding, "Even if fans can quickly obtain related information online, this characteristic will not change." Insider B said, "'Bubble for Japan' is a medium for expanding new IP business," adding, "It can be a link that connects beyond Japan to the world."
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