Chinese entertainment powers SM Entertainment and Tencent Music join forces to establish a fresh idol group from China.
SM Entertainment, a notable label under South Korea's K-pop industry, has entered a strategic partnership with Chinese music giant Tencent Music Entertainment following HYBE's complete divestment from its stake in SM. As of May 2025, HYBE sold its entire 9.38% ownership share in SM Entertainment to Tencent for approximately 243 billion KRW (approximately $178 million USD).
The partnership fosters collaboration in music distribution, artist development targeting the Asian market, intellectual property (IP) development, and event and tour planning in China. Notably, SM and Tencent plan to unveil a new boy group geared towards the Chinese market within the next 2–3 years, with SM overseeing talent development and Tencent handling promotion and distribution. Additionally, the organizations plan to host SMTOWN LIVE in Hong Kong in 2026 and orchestrate nationwide tours for SM artists in China, including live streaming services.
While HYBE has exited its ownership stake in SM Entertainment, the company remains committed to growing its presence in China through independent means. This sale represents a strategic realignment for HYBE, potentially paving the way for new ventures in China, as opposed to maintaining a stake in a direct competitor. Meanwhile, Tencent Music strengthens its influence in the Chinese market by collaborating with Korean entertainment firms, rather than relying solely on HYBE's previous indirect involvement.
This move marks a significant shift in the competitive landscape between major Korean entertainment companies and Chinese music platforms.
- The strategic partnership between SM Entertainment and Tencent Music Entertainment, now holding SM's previously owned stake, aims to jointly develop a new boy group catering to the Chinese market, demonstrating collaboration in talent development and entertainment.
- Beyond music distribution and artist development, the partnership also targets intellectual property (IP) development, event and tour planning, and the organization of SMTOWN LIVE in Hong Kong in 2026, as well as nationwide tours for SM artists in China, including live streaming services.
- With Tencent Music Entertainment expanding its reach through collaborations with Korean entertainment firms like SM, the organization is fortifying its influence within China's entertainment industry, creating a new dimension in the competitive landscape against major Korean counterparts.
