SM and Tencent Music Strengthen Strategic Partnership

SM and Tencent Music Strengthen Strategic Partnership - English Translation

**SM Entertainment and Tencent Music Entertainment Group Enhance Collaboration for Global Market Expansion**

SM Entertainment (SM) and China’s leading music platform, Tencent Music Entertainment Group (TME), are embarking on a strategic collaboration to conquer the global market. The two companies signed a Memorandum of Understanding (MOU) on May 29th, agreeing to establish a comprehensive cooperative system.

This collaboration goes beyond existing music distribution-focused cooperation, significantly expanding the scope to include joint production of new idol groups targeting the Asian market, IP businesses, and local performances. The partnership has been accelerated following TME’s acquisition of the stake previously held by HYBE in SM, making TME a major shareholder. The combination of SM’s global IP and content production capabilities with TME’s vast user base, platform, and distribution infrastructure is expected to generate explosive synergy in Asia and enhance the competitiveness of both companies.

Notably, the collaboration includes plans to launch a Chinese local idol group within the next 2-3 years. SM will be responsible for the overall production, including casting, training, and producing, while TME will handle local promotion, album and music distribution. The two companies plan to jointly nurture an idol group representing Asia.

In the IP business, they will jointly develop various businesses in China, including physical and digital photocard, character goods, pop-up stores, and video content. In the performance sector, they will strengthen cooperation on tours of SM artists, including the SMTOWN LIVE concert scheduled to be held in Hong Kong in 2026. Furthermore, they plan to target a wider online fanbase through live streaming services utilizing SM’s Beyond LIVE technology.

This strategic partnership, combining the strengths of both companies, is a crucial turning point for expanding SM’s global influence and solidifying its position in the Chinese market. It is expected to create new business models and further strengthen their position in the global market.

Written by Kim Su Jin

Translated by Lee So Yun