SM Entertainment Unveils 'SM NEXT 3.0' Growth Strategy

SM Entertainment has unveiled "SM NEXT 3.0," a new corporate strategy marking the next phase of growth for the K-pop powerhouse as it celebrates its 30th anniversary. The plan, presented in two video briefings released online this week, spans a restructured creative system, an expanded global intellectual-property push, deeper use of artificial intelligence, and the debut of a new boy group.

Co-CEOs Daniel Jang and Dmitry YJ Tak, together with Chief A&R Officer Chris Lee, described the shift from the company's existing "SM 3.0" framework, which built out multi-production and global distribution capabilities over the past three years, toward what they call a "Multi-Creative" structure. Rather than relying on a fixed production hierarchy, SM says it will assemble flexible, project-specific creative teams built around each artist. Tak said the approach is meant "to achieve growth and transformation simultaneously" as artists' creative direction evolves.

Among the most closely watched announcements is confirmation of a new boy group set to debut later this year. Members will reportedly be introduced gradually through the variety show "Reply High School," airing early in the year, with candidates drawn from the company's SMTR25 trainee class. The addition would expand SM's roster, which already includes SHINee, EXO, NCT, aespa and RIIZE.

On the global front, SM plans to deepen ties with China's Tencent Music Entertainment, Thailand's True Corporation and several Japanese partners to strengthen its footprint in key Asian markets while preserving what executives call the company's creative identity. SM is also pushing to grow its music-publishing arm, KMR (Kreation Music Rights), which holds agreements with more than 370 composers worldwide and manages a catalog of over 7,000 K-pop songs after expanding into the U.S. market last year. Lee said the five-year goal is to help KMR become "Asia's largest and most respected publishing company," positioning it as a broader IP hub.

SM is also folding artificial intelligence more directly into its artist-and-repertoire operations, using AI tools to analyze tracks and match songs with artists. Jang pointed to the company's ties with parent firm Kakao as a distinct advantage, saying he sees "strong potential for meaningful synergy" between K-pop and AI, and confirmed SM will pursue music-industry acquisitions and step up capital investment more aggressively than in the previous three years.

The strategy also touches on artist protection and fan engagement. SM said it will continue its KWANGYA 119 reporting system, which has logged roughly 300,000 reports with a 99.8% response rate, and will begin issuing quarterly updates on legal actions taken against false rumors and malicious attacks on its artists. The company also confirmed that DearU, operator of the fan-communication platform Bubble, is now a formal SM affiliate, a move meant to strengthen ties with global fan platforms as the company expands concerts, merchandise and other fan experiences.

Closing the presentation, Jang and Tak framed "SM NEXT 3.0" as the next chapter in K-pop's global expansion, pledging to pair disciplined, sustainable growth with bolder investment in the years ahead.