SM Entertainment

Corporate brand

A South Korean multinational entertainment company that helped shape modern K-pop through artist development, music production, talent management, and global cultural businesses.

Last updated October 28, 2026

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Overview

SM Entertainment is a South Korean multinational entertainment company founded by Lee Soo-man in 1995. It developed from a Seoul-based music studio into one of the most influential companies in the Korean popular-music industry. Its operations encompass record-label activities, artist management, music publishing, concert and event production, audiovisual content, merchandising, fan platforms, and related cultural businesses. The company became closely associated with the systematic development of idol artists. Rather than relying only on finished performers, SM built a structured recruitment and training model covering singing, dance, language, media presentation, public image, and group positioning. This approach supported the launch of first-generation acts including H.O.T., S.E.S., Shinhwa, Fly to the Sky, and BoA. Their popularity, particularly in Japan and other Asian markets, helped establish the commercial foundations of the Korean Wave. During the 2000s and 2010s, SM expanded its roster and international ambitions. TVXQ, Super Junior, Girls' Generation, SHINee, f(x), EXO, Red Velvet, and NCT each represented different approaches to multilingual promotion, large-scale fandom development, genre experimentation, or flexible group structures. BoA's Japanese career and later projects involving Chinese- and English-language markets were important to the company's overseas strategy. SM also created or participated in labels, production companies, joint ventures, distribution arrangements, travel businesses, merchandising operations, and acting and television activities. The company is recognized for treating artist groups as integrated intellectual-property platforms. Music releases are often connected with visual identities, fictional universes, branded merchandise, concerts, digital content, and fan communities. Projects such as NCT's multiple-unit system, aespa's virtual-world concepts, SM Station, ScreaM Records, and the SM Culture Universe illustrate this emphasis on scalable formats and cross-media development. SM's corporate structure and governance became increasingly contested in the early 2020s. In 2023, management announced an 'SM 3.0' plan intended to replace the founder-centered production model with multiple production centers and labels. The announcement triggered a public dispute involving Lee Soo-man, Kakao, and HYBE over control of the company. Kakao ultimately became the controlling shareholder after a prolonged transaction and governance contest, while SM continued operating as a major entertainment company with established and newer acts such as TVXQ, Super Junior, Girls' Generation, SHINee, EXO, Red Velvet, NCT, aespa, RIIZE, Naevis, and Hearts2Hearts.

History

Lee Soo-man established an earlier venture known as SM Studio in Seoul in 1989 after returning from the United States. Following difficulties associated with the management and distribution of early artists, he shifted toward a Japanese-influenced idol model built around long-term training, group presentation, and tightly coordinated production. The company adopted the name SM Entertainment in February 1995. The first major phase of growth came through H.O.T., which debuted in 1996, followed by S.E.S. in 1997, Shinhwa in 1998, Fly to the Sky in 1999, and BoA in 2000. These acts helped popularize the modern Korean idol format and gave SM experience in developing both groups and soloists. BoA's subsequent success in Japan became an important example of planned overseas expansion. SM was listed on KOSDAQ in 2000 and began building international and online affiliations. It formed SM Entertainment Japan with partners including Avex Trax and Yoshimoto Kogyo, and later introduced TVXQ, Super Junior, Girls' Generation, SHINee, f(x), and other acts. The company's international strategy used multilingual releases, regional sub-units, local partnerships, and touring rather than relying solely on domestic sales. The company diversified during the 2010s. It participated in KMP Holdings and United Asia Management, created ventures in Thailand and Indonesia, expanded into television and drama production through SM Culture & Contents, pursued labels and production companies, and experimented with tourism, restaurants, merchandise, sports marketing, and branded cultural experiences. SM's artist roster became a portfolio of distinct generations and styles, from the established catalog of H.O.T. and S.E.S. to the global fandoms of EXO, Red Velvet, and NCT. NCT, introduced in 2016, formalized a particularly flexible model: a larger umbrella project with units designed for different markets and concepts. WayV extended the model into the Chinese market. SM also established SM Station as a continuing digital-release channel and ScreaM Records as an electronic-music label. In 2019, SuperM combined members from several existing groups and was promoted internationally with Capitol Music Group. The COVID-19 period accelerated the company's digital and remote-event activities. SM and Naver developed Beyond Live, an online concert format aimed at international audiences, and SM later worked with JYP Entertainment through Beyond Live Corporation. SM also launched SM Classics projects with the Seoul Philharmonic Orchestra and opened SM Institute with an education partner. In late 2022, SM ended its production contract with Like Planning, a company associated with Lee Soo-man. In February 2023, co-CEOs Lee Sung-soo and Tak Young-jun presented SM 3.0, a plan centered on multiple production centers and labels. Lee Soo-man challenged the issuance of new shares and convertible bonds connected with Kakao, while HYBE and Kakao pursued competing positions in the company. Kakao ultimately became the controlling shareholder after the dispute. SM continues to operate as a major South Korean entertainment business, combining music, artist management, live events, content, merchandising, and global partnerships.

2023
SM 3.0 and ownership contest
[1]SM Entertainmenten.wikipedia.org
SM announces a multi-label operating model amid a major dispute involving Lee Soo-man, HYBE, and Kakao.
2020
Beyond Live is developed
[1]SM Entertainmenten.wikipedia.org
SM and Naver establish an online concert model for global audiences during the pandemic.
2019
SuperM launches
[1]SM Entertainmenten.wikipedia.org
SM and Capitol Music Group debut a supergroup drawn from SHINee, EXO, and NCT.
2016
NCT project begins
[1]SM Entertainmenten.wikipedia.org
SM introduces NCT and its multi-unit, expandable group concept.
2012
EXO debuts
[1]SM Entertainmenten.wikipedia.org
EXO launches with Korean- and Chinese-market units, reinforcing SM's cross-border group strategy.
2003
TVXQ debuts
[1]SM Entertainmenten.wikipedia.org
TVXQ becomes a key act in SM's second-generation and Japan-focused expansion.
2001
SM Entertainment Japan is founded
[1]SM Entertainmenten.wikipedia.org
The company creates an overseas division with Japanese partners to support regional expansion.
2000
SM lists on KOSDAQ
[1]SM Entertainmenten.wikipedia.org
SM becomes the first entertainment company to list on KOSDAQ, according to the cited history.
1996
H.O.T. debuts
[1]SM Entertainmenten.wikipedia.org
The boy group becomes one of the defining acts of first-generation K-pop.
1995
SM Entertainment is established
[1]SM Entertainmenten.wikipedia.org
The company adopts the SM Entertainment name and formalizes Lee Soo-man's idol-development business model.

Products and positioning

A premium, system-driven and globally oriented K-pop entertainment house known for artist development, polished visual identities, experimental pop production, and scalable intellectual-property franchises.

Talent management · 1995
Artist management
SM recruits, trains, develops, and manages singers, groups, actors, and media personalities. The model covers recording, performance preparation, visual branding, public activities, endorsements, touring, and international promotion.
Music label · 1995
Recorded music
The company releases albums, singles, digital music, music videos, and related recordings through its core label and affiliated or specialized labels. Its catalog spans idol pop, dance music, R&B, electronic music, ballads, and collaborative projects.
Concert and cultural franchise · 2008
SMTOWN
SMTOWN is the company's umbrella identity for multi-artist concerts, compilations, exhibitions, merchandise, and broader cultural experiences. It connects artists from different generations within a common corporate and fan-facing platform.
Artist franchise · 2016
NCT
NCT is a scalable group project organized into units with different memberships, markets, and musical identities. NCT U, NCT 127, NCT Dream, and WayV demonstrate the format's flexibility across Korean, Japanese, Chinese, and global activities.
Digital live entertainment · 2020
Beyond Live
Beyond Live is an online concert and live-content format created with Naver during the pandemic. It was designed to deliver SM artists' performances to audiences in many countries through digital distribution and interactive features.
Digital music channel · 2016
SM Station
SM Station is a recurring digital music channel intended to support frequent releases, collaborations, solo work, and projects outside the standard album cycle. It broadened participation beyond the company's principal idol-group releases.

Controversies

2023
SM 3.0 governance and takeover dispute
SM's proposal to issue shares and convertible bonds to Kakao, together with the shift away from Lee Soo-man's production arrangement, prompted legal challenges and a public contest involving Lee Soo-man, HYBE, Kakao, and the company. The dispute concerned control, governance, production rights, and the future operating model.
Source
2020
SM Entertainment responds to allegations concerning NCT member Taeyong
In June 2020, SM Entertainment issued a response to online claims regarding the conduct of NCT member Taeyong during his middle school years. The agency stated that the posts contained unverified and distorted claims. SM Entertainment also said it would consider legal action if such activity continued. The response addressed the online allegations directly without detailing specific incidents, and no further outcomes were stated in the source.
Source
2020
SM Entertainment responds to Black Mamba video similarity allegations
SM Entertainment addressed allegations that scenes in aespa's "Black Mamba" music video resembled other artwork. The company said it had contacted the artist and company mentioned in connection with the scenes, explained its planning intentions and the group's story, and said they understood the process and had no objections to the scenes. The video had faced allegations of similarities to other works.
Source

2022Ever SM Town
South Korea
SM and Everland created an amusement-park collaboration based on SM artists and the SM Culture Universe.
Outcome. The collaboration expanded SM's intellectual-property and experiential-entertainment strategy.
Source
2020Beyond Live
Global
SM used online concerts to maintain international fan engagement during COVID-19 restrictions and developed the format with Naver.
Outcome. The project became a dedicated online concert business and was later organized through Beyond Live Corporation with JYP Entertainment.
Source
2019SuperM global launch
South Korea · United States · Global
SM partnered with Capitol Music Group to introduce SuperM, a project assembled from members of several SM groups and positioned for international promotion.
Outcome. The debut EP reached number one on the Billboard 200, according to the cited reference.
Source

Brand decisions

2023
Adopt the SM 3.0 production modelStrategy
Background
Management argued that a founder-centered production structure could create delays and constrain the company's growth.
Action taken
SM announced multiple production centers and labels intended to distribute creative and operational responsibility.
Aftermath
The plan became the center of a corporate-control dispute involving Lee Soo-man, HYBE, Kakao, and SM's board and management.
Source
2020
Create Beyond Live CorporationProduct launch
Background
Pandemic restrictions made conventional international concerts difficult and increased demand for online performance formats.
Action taken
SM and JYP Entertainment established Beyond Live Corporation after SM and Naver developed the online concert service.
Aftermath
The arrangement established a dedicated digital live-entertainment platform for global audiences.
Source
2016
Introduce the NCT multi-unit systemStrategy
Background
SM sought a group structure that could support multiple markets and expand through different units rather than a fixed membership model.
Action taken
The company launched NCT and subsequently debuted NCT U, NCT 127, NCT Dream, and WayV.
Aftermath
The format became one of SM's central artist-development and internationalization strategies.
Source

Recent events

2022-01-03
S.M. Entertainment launches digital passport membership[5]S.M. Entertainment推出数字护照会员服务koreaherald.com
Reported: 2022-01-03
S.M. Entertainment launched the Music Nation SMTown Meta-passport, a digital passport membership for fans. The membership was scheduled to be distributed on February 14.
2021-12-31
S.M. Entertainment launches Beyond Live[6]S.M. Entertainment推出Beyond Livekoreaherald.com
Reported: 2021-12-31
S.M. Entertainment said it launched Beyond Live, an online-only concert streaming platform.
2021-11-19
CJ ENM reported to plan acquisition of Lee Soo-man’s SM Entertainment shares[7]据报道CJ ENM拟收购李秀满持有的SM娱乐股份ent.sina.com.cn
Reported: 2021-11-19
A report citing investment-banking sources said CJ ENM would acquire Lee Soo-man’s stake in SM Entertainment for 630 billion won and was expected to sign a contract that day or the following day.
2021-11-04
CJ ENM enters exclusive talks to acquire a stake in SM Entertainment[8]CJ ENM与SM娱乐就收购股权进入独家谈判kedglobal.com
Reported: 2021-11-04
CJ ENM was reported to be in exclusive talks to acquire a 19.37% stake in SM Entertainment.
2021-06-24
KAIST and SM Entertainment team up on metaverse research[9]KAIST与SM娱乐合作开展元宇宙研究koreaherald.com
Reported: 2021-06-24
KAIST and SM Entertainment teamed up to conduct joint research on digital avatars for virtual concerts and metaverse concert technology.
2021-05-06
SM Entertainment and MGM partner on U.S. K-pop audition program[10]SM Entertainment与MGM合作推出美国K-pop选秀节目soompi.com
Reported: 2021-05-06
SM Entertainment and MGM Worldwide Television Group partnered to create a K-pop audition program in the United States, intended to launch a new NCT sub-unit focused on U.S. promotions.
2020-12-22
SM Entertainment responds to Black Mamba video similarity allegations[4]SM Entertainment responds to Black Mamba video similarity allegationssoompi.com
Reported: 2020-12-22
SM Entertainment said it contacted the artist and company mentioned in connection with scenes in aespa’s “Black Mamba” music video, explained its planning intentions and group story, and said they understood the process and had no objections to the scenes. The video had faced allegations of similarities to other artwork.
2020-09-25
SM Entertainment and Marvel reveal collaboration[11]SM Entertainment 与 Marvel 公布合作kpopstarz.com
Reported: 2020-09-25
SM Entertainment and Marvel revealed a collaboration involving a limited-edition merchandise series, described in the article as the beginning of a long-term partnership.
2020-08-03
S.M. Entertainment secures funding from Naver[12]S.M. Entertainment 获得 Naver 投资资金thejakartapost.com
Reported: 2020-08-04
S.M. Entertainment said it secured 100 billion won in funding from Naver. The funding will go to two S.M. affiliates and a fund dedicated to creating new video content.
2020-08-03
S.M. Entertainment secures funding from Naver[13]S.M. Entertainment获得Naver融资koreaherald.com
Reported: 2020-08-03
S.M. Entertainment said it secured 100 billion won in funding from Naver. The funding will go to two S.M. affiliates and a fund dedicated to creating video content.

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