SM to Debut New Boy Group This Year... "NEXT 3.0" Strategy

Expansion of Merchandise and Platform Businesses,
Integration of AI Technology

Tak Youngjun (left) and Jang Cheolhyuk, Co-CEOs of SM Entertainment. Provided by SM Entertainment

SM Entertainment unveiled its new blueprint for growth, "SM NEXT 3.0," on January 20.

On this day, SM announced through its official YouTube channel a vision to evolve into a "Multi-Creative" system focused on people and artists, building on the "SM 3.0" system established over the past three years. Co-CEOs Jang Cheolhyuk and Tak Youngjun, along with Chief A&R Officer Lee Seongsoo, personally presented the company's future direction.

CEO Tak Youngjun stated, "We will place artists at the center and assign the best creators to achieve both growth and transformation. We will flexibly establish optimized creative lineups for each project to enhance the quality of our artists."

SM officially announced the debut of a new boy group this year. The members of the male trainee team "SMTR25" are the candidates, and they will be introduced gradually through an entertainment program early this year. The company has also detailed its global intellectual property (IP) strategy by collaborating with local partners such as Tencent Music Entertainment in China and True in Thailand.

SM presented plans to strengthen its global infrastructure by leveraging its music publishing subsidiary, Kreation Music Rights (KMR). Chief A&R Officer Lee Seongsoo said, "KMR has established a global repertoire base and will expand into the United States by 2025. Our goal is to grow into the largest publishing company in Asia within five years." He also mentioned plans to upgrade the production system, such as offering customized music for each artist using artificial intelligence (AI) technology.

The company also introduced policies to protect artists and expand fan services. CEO Jang Cheolhyuk noted, "Since the implementation of KWANGYA 119, we have handled 300,000 reports over the past two years. Starting in 2026, we will share quarterly updates on our response status with fans."

Additionally, SM identified the expansion of concerts, merchandise (MD), and platform businesses, as well as AI synergy with its parent company Kakao, as key growth drivers. CEO Jang added, "We will actively seek merger and acquisition (M&A) opportunities within the music and related industries to accelerate our growth."

Co-CEOs Jang Cheolhyuk and Tak Youngjun emphasized, "SM NEXT 3.0 is about achieving limitless expansion by combining technology and platforms with the essence of music. We will prove our position as a global leading company."