SM, Kakao to launch joint venture in North America
Kakao Entertainment and SM Entertainment announced Tuesday that they will launch a joint venture in North America.
The two firms aim to create synergy by combining each company's core strengths — such as SM Entertainment's global intellectual property (IP) and production capabilities and Kakao Entertainment's music distribution network and multi-label system.
In North America, one of the core markets of the global entertainment industry, the joint venture aims to secure a solid understanding and foundation to accelerate its entry into European and other international markets.
"The goal is to become firmly established as a key player in the global K-pop scene and strengthen K-culture's global status through expanding cultural exports," reads a statement from Kakao Entertainment on Tuesday.
By launching a North American joint corporation, the two companies plan to accelerate the global promotion of their artists while actively investing in developing new IPs to enhance their competitiveness in the global music business.
Girl group IVE from Starship Entertainment, under Kakao, and girl group aespa under SM have already revealed plans for promotional activities this year.
Joseph Chang, CEO of Kakao Entertainment America, will spearhead the new joint corporation. Chang is an executive at both Kakao Entertainment and SM Entertainment.
"Through this joint corporation, we will accelerate the global expansion and growth of artists under Kakao Entertainment and SM Entertainment and prove to the global market that our business encompasses the planning, production and distribution of music and artist IP," Chang said.
To find out more about Kakao Entertainment and SM Entertainment, visit Celeb Confirmed!
BY HALEY YANG [email@example.com]