SM Leisure Co-CEOs Daniel Jang and Dmitry YJ Tak are betting huge on AI, and plan to ramp up M&A exercise inside music as they chart a brand new course for the South Korean Okay-pop big.
The pair have unveiled a blueprint for the corporate’s progress within the wake of its thirtieth anniversary final yr, together with its IP technique, enterprise and world growth ambitions, plus administration and funding methods.
Talking alongside Chief A&R Officer (CAO) Chris Lee on SM’s official YouTube channel, Jang and Tak mentioned “SM NEXT 3.0” represented “the borderless growth of Okay-pop” because the agency – recognized for acts comparable to NCT 127, EXO, Riize, and aespa – evolves from its present “SM 3.0” system right into a “Multi-Artistic” construction.
SM additionally shared plans to “extra actively” pursue M&A alternatives via music.
“We are going to pursue M&A alternatives inside music and associated industries extra actively than prior to now three years, and enhance capital funding to speed up progress,” mentioned Jang.
Elsewhere, as a part of the brand new SM NEXT 3.0 Technique, the corporate goals to construct Asia’s “largest and most revered publishing firm” by way of its Kreation Music Rights (KMR) subsidiary.
“By means of KMR, our purpose inside the subsequent 5 years is to construct Asia’s largest and most revered publishing firm”
CHRIS LEE, SM Leisure
“KMR has established a powerful basis for a worldwide repertoire by increasing from Korea and Europe into the US in 2025,” mentioned Lee. “At this time, it maintains unique or sub-publishing agreements with greater than 370 composers worldwide and manages a core Okay-pop catalog of over 7,000 songs.
“By means of KMR, our purpose inside the subsequent 5 years is to construct Asia’s largest and most revered publishing firm, and on that basis, to develop additional as a hub for mental property (IP) and a pacesetter shaping the way forward for the music market.”
He additionally outlined plans to additional improve SM’s A&R programs via synthetic intelligence, noting that AI might be used to analyse tens of hundreds of songs gathered over SM’s 30-year historical past to advocate tracks with a excessive degree of suitability for every artist, serving to followers uncover music that higher aligns with their particular person tastes.
Addressing AI as a key future progress driver, Jang said that SM had a “distinct benefit” in having the ability to leverage the AI technological capabilities of majority shareholder Kakao.
“We see sturdy potential for significant synergy on the intersection of a quickly evolving Okay-pop panorama and AI,” he mentioned.
Additional detailing SM’s world localized IP technique, Tak mentioned the corporate was strengthening its presence in key markets via native partnerships.
He continued: “In China, we’re working with Tencent Music Leisure; in Thailand, with True; and in Japan, we’re at present in discussions with a number of companions. Our focus is on creating regionally resonant IP whereas sustaining SM’s inventive id.”
SM additionally introduced the introduction of what it calls an enhanced Multi-Artistic construction, designed to position artists “on the core of the inventive course of”.
“SM is positioning merchandise not merely as merchandise, however as a medium via which followers can expertise an artist’s universe”
Daniel Jang, SM leisure
“By inserting artists on the heart and flexibly assigning essentially the most optimum inventive groups, we purpose to attain progress and transformation concurrently,” mentioned Tak.
“As every artist’s universe evolves, it calls for brand spanking new creative languages. Slightly than working inside a hard and fast manufacturing hierarchy, we’ll construct versatile, project-optimized inventive lineups that permit each artist’s transformation to be realized with the very best degree of precision and high quality.”
As well as, SM mentioned its enterprise and funding methods in response to evolving fan consumption patterns – significantly round merchandise and live shows
Jang mentioned: “Reside performances play a important position within the evolving Okay-pop trade, and we’re centered on delivering live performance experiences optimized for fan communities in every area.”
He added: “As artist IP–based mostly secondary companies proceed to develop, SM is positioning merchandise not merely as merchandise, however as a medium via which followers can expertise an artist’s universe. We’re main new developments on this area and plan to develop additional into way of life merchandise going ahead.”
As well as, SM famous that it has introduced DearU, operator of superfan platform Bubble, into its group as an affiliated subsidiary, and can proceed to collaborate with world platforms to ship Okay-content experiences to followers worldwide.
“By means of disciplined, sustainable progress alongside daring, forward-looking investments, we’ll proceed to form the way forward for the worldwide leisure market,” concluded Jang and Tak.
In its most up-to-date monetary outcomes, the corporate reported a 261.6% year-over-year enhance in working revenue for Q3 2025, to 48.2 billion received, or USD $34.8 million on the common change for the quarter. That progress was pushed by a streak of hit albums, rising live performance income, and progress at fan platform DearU.
Kakao Leisure, along with its dad or mum Kakao Corp., holds a 40.28% stake in HYBE rival SM Leisure and owns a number of main Okay-pop businesses together with Starship Leisure, EDAM Leisure, and Antenna
Kakao Leisure additionally owns South Korea-based music streaming service Melon.Music Enterprise Worldwide
