K-Pop and Korean Talent Industry Poised for Shakeup via SM Entertainment Stake Sale

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SM Entertainment has formally put a 20% stake up for sale.

Lee and his SM Entertainment were indeed early pioneers with first-generation K-pop acts including H.O.T., TVXQ, BoA and Girls’ Generation. With rival agencies YG Entertainment and JYP Entertainment, K-pop emerged in the late 1990s and enjoyed export success in Japan.

Hybe has already utilized its BTS-powered momentum to acquire smaller music labels, build its own Weverse digital platform for fans , and conduct an insanely popular IPO in late 2020. SM Entertainment has leaned into TV originals, collaborated with MGM and Mark Burnett for “K-Pop Goes Hollywood,” established SM Studios and revealed plans to create more AR and VR-integrated content. Its Dear u Bubble, a direct fan-to-artist messaging app, available on subscription and boasting more than 150 artists, including some from JYP, is a direct competitor to Hybe’s Weverse.

 

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