Kreation Music Rights
Kreation Music Rights is SM Entertainment's South Korean music-publishing company, created to expand songwriter recruitment, internalize publishing revenue, and support SM's multi-production-center system.
Last updated August 26, 2026
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Overview
Kreation Music Rights, commonly abbreviated as KMR, is a South Korean music-publishing company and subsidiary of SM Entertainment. It was established in 2023 as one of the structural initiatives associated with SM Entertainment's SM 3.0 strategy. Rather than functioning primarily as a conventional artist-management label, KMR operates in the music-rights and songwriting ecosystem: it recruits and represents songwriters and producers, develops publishing relationships, supplies compositions to artists, and supports the creation and administration of music used by SM and other companies. The company grew out of SM's effort to reorganize its creative operations around multiple production centers. SM converted its existing SM Friends subsidiary into a music-publishing label, giving the group a dedicated mechanism for building a broader pool of songs and production talent. This structure was intended to support the output of SM's different production centers while also creating an additional revenue channel through copyright ownership, publishing administration, royalties, and licensing of compositions to outside parties. KMR launched in September 2023 with an investment of 27.1 billion won. Lee Sung-soo, who had served as SM's chief A&R officer and had long been involved in the company's music production system, became its first chief executive. KMR's business expanded beyond South Korea soon after its launch. In December 2023, it established a European office in Stockholm, reflecting the importance of Scandinavian songwriting and production networks to K-pop. Its roster and affiliated creative network included the Norwegian songwriting team Dsign Music and the Sweden-based duo Sunshine, whose credits include songs associated with Girls' Generation, NCT Dream, Taemin, Red Velvet, and aespa. KMR also entered sub-publishing arrangements with Sweden's TEN Music Group and Japan's Soundgraphics, broadening its access to international catalogs and creative communities. The company developed a company-in-company model through acquisitions and affiliated production units. MonoTree and The Hub became part of KMR's creative structure, while Kangta-led Smash Hit and BadX were identified as other company-in-company operations. In March 2024, KMR launched the Kustomade production label, representing Kim Woo-jin, formerly a member of Stray Kids, and Yelo, a member of MonoTree. KMR also pursued educational partnerships with institutions including Dong-ah Institute of Media and Arts and Howon University to help develop new talent for K-pop songwriting and production. KMR has attracted attention because of the scale of its recruitment and its role in SM's long-term rights strategy. By April 2025, it had recruited more than 200 songwriters, making it the largest company of its type in the K-pop industry according to the cited reference material. Kangta stated in September 2024 that SM had released approximately 170 songs through KMR since its creation and that the arrangement could save SM as much as 60 billion won annually in copyright and publishing fees. Those figures describe SM's reported financial and operational rationale rather than independently verified KMR revenue. The company has also faced scrutiny regarding its acquisitions of The Hub and entertainment company 10x Entertainment, with critics alleging that SM paid excessive prices. SM rejected that characterization, arguing that The Hub had demonstrated rapid sales growth and that 10x Entertainment fit a broader plan to establish a label. In April 2025, Heo Young-ah became KMR's chief executive, bringing experience from Sony Music Publishing Korea, the Korea Music Copyright Association, Netflix, and The Walt Disney Company Korea. Her appointment was presented as part of KMR's effort to strengthen its global business. KMR remains an SM Entertainment subsidiary focused on music publishing, songwriter development, production infrastructure, and international rights partnerships.
History
Kreation Music Rights was created by SM Entertainment during the implementation of its SM 3.0 strategy. The project was publicly outlined in August 2023 by SM CEO Jang Cheol-hyuk, who described plans for a specialized music-publishing company. SM subsequently repurposed its existing SM Friends subsidiary and launched KMR in September 2023 with an investment of 27.1 billion won. Lee Sung-soo, SM's chief A&R officer and a long-serving production executive, became the first CEO. The new company was designed to complement SM's multi-production-center model. Its functions included recruiting songwriters and producers, developing a larger song pool for SM artists, administering publishing rights, and licensing music to external companies. The arrangement also gave SM a way to retain more value from copyrights and publishing rather than relying exclusively on third-party publishers. KMR therefore occupied a position between a traditional publishing company, a creative-services operation, and an internal production platform. International expansion began in December 2023 with the opening of a Stockholm office. The location reflected the established contribution of Scandinavian writers to K-pop. KMR's affiliated writers included Dsign Music and Sunshine, whose prior credits included songs for SM-associated acts such as Girls' Generation, NCT Dream, Taemin, Red Velvet, and aespa. KMR also signed sub-publishing agreements with TEN Music Group in Sweden and Soundgraphics in Japan. KMR expanded its production infrastructure through the acquisition or incorporation of creative teams and companies. MonoTree and The Hub joined the company-in-company structure, alongside Smash Hit and BadX. In March 2024, the company launched Kustomade, a production label associated with Kim Woo-jin and Yelo. It also formed educational agreements with Dong-ah Institute of Media and Arts and Howon University to encourage the development of K-pop production talent. The expansion generated controversy over the reported acquisition valuations of The Hub and 10x Entertainment. Critics alleged that the transactions were overpriced, while SM argued that The Hub's rapid sales growth justified its valuation and that 10x Entertainment served a planned label-building strategy. The dispute did not change KMR's stated direction toward a larger integrated publishing and production network. By September 2024, Kangta said that approximately 170 songs had been released through KMR since its establishment and that the system could save SM up to 60 billion won per year in copyright and publishing fees. By April 2025, KMR had recruited more than 200 songwriters. In the same period, Heo Young-ah replaced Lee Sung-soo as CEO. Her background in music publishing, collective rights administration, streaming, and entertainment companies was intended to support KMR's international development. The company remains an active SM Entertainment subsidiary focused on music rights, songwriter recruitment, production labels, and cross-border publishing partnerships.
- 2025
Heo Young-ah becomes CEO
[1]Heo Young-ah is appointed chief executive to assist KMR's expansion in global markets.
- 2025
Songwriter roster exceeds 200
[1]KMR is reported to have recruited more than 200 songwriters, making it the largest company of its type in the K-pop industry.
- 2024
Kustomade is launched
[1]KMR launches the Kustomade production label with Kim Woo-jin and Yelo among its associated artists.
- 2024
KMR reports approximately 170 released songs
[1]Kangta states that around 170 songs had been released through KMR since its formation and describes substantial potential savings in publishing fees.
- 2023
SM announces KMR within the SM 3.0 strategy
[1]SM Entertainment presents plans for a dedicated music-publishing company to support its multi-production-center structure.
- 2023
KMR launches
[1]KMR begins operations in September after SM converts SM Friends into a music-publishing subsidiary and invests 27.1 billion won.
- 2023
Stockholm office opens
[1]KMR establishes its first European office in Stockholm.
Products and positioning
A global-facing music-publishing and creative-rights platform within SM Entertainment, positioned to supply songs to SM's production centers, develop and represent songwriting talent, and retain or expand publishing value across domestic and international markets.
Music publishing · 2023
Music publishing and rights administration
KMR's core activity is the recruitment and representation of songwriters and producers, development of songs for artists, and administration or licensing of publishing rights. The company was created partly to provide SM Entertainment with a larger internal song pool and a greater share of the value associated with copyrights and publishing.
Production label · 2024
Kustomade
Kustomade is a production label launched by KMR in March 2024. Its identified associated artists include Kim Woo-jin, formerly of Stray Kids, and Yelo, who is also connected with MonoTree. It extends KMR's publishing operation into a more visible artist and production-label format.
Publishing partnerships · 2023
International sub-publishing network
KMR has developed cross-border publishing relationships through agreements with Sweden's TEN Music Group and Japan's Soundgraphics. These arrangements connect KMR with overseas catalogs, songwriters, producers, and licensing opportunities.
Music production · 2023
Company-in-company production units
KMR's creative structure includes company-in-company operations such as MonoTree, The Hub, Smash Hit, and BadX. These units give the wider organization access to specialized production teams and songwriting capabilities while preserving distinct creative identities.
Controversies
2024
Criticism of The Hub and 10x Entertainment acquisitions
KMR's acquisition activity involving The Hub and 10x Entertainment led to allegations that SM Entertainment had paid excessive prices. SM rejected the claims, pointing to The Hub's rapid sales growth and describing 10x Entertainment as part of its plan to build a label.
Brand decisions
2025
Appoint Heo Young-ah as CEOOtherBackground
KMR was expanding its roster and international publishing relationships.
Action taken
Heo Young-ah was appointed chief executive after prior experience at Sony Music Publishing Korea, the Korea Music Copyright Association, Netflix, and The Walt Disney Company Korea.
Aftermath
The appointment positioned KMR for a stronger focus on global-market development.
2024
Launch KustomadeProduct launchBackground
KMR sought to extend its publishing and production capabilities into a dedicated label format.
Action taken
The company launched Kustomade and associated it with Kim Woo-jin and Yelo.
Aftermath
Kustomade became the identified production-label arm of KMR.
2023
Create a dedicated music-publishing subsidiaryStrategyBackground
SM Entertainment's SM 3.0 plan called for a multi-production-center system and a broader creative infrastructure.
Action taken
SM converted SM Friends into KMR, invested 27.1 billion won, and assigned the company responsibility for songwriter recruitment, publishing, and song development.
Aftermath
KMR became an internal and external publishing platform for SM's music business and subsequently expanded its international network.
Initial investment. 27.1 billion won (September 2023 launch)
2023
Expand into European publishing marketsStrategyBackground
Scandinavian songwriters and producers have played a significant role in K-pop composition and production.
Action taken
KMR opened a Stockholm office and developed relationships with European writers and TEN Music Group.
Aftermath
The company established a direct European presence and broadened its international publishing network.
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