SM Entertainment
This article needs additional citations for verification. (August 2023) |
Founded |
|
---|---|
Founder | Lee Soo-man |
Headquarters | SM Entertainment 83-21, Wangsimni-ro, Seongsu-dong, Seongdong-gu, Seoul, South Korea Singapore (TBC)[1][2] |
Area served | Worldwide |
Key people |
|
Services |
|
Revenue | US$657 million (2022) |
US$62.3 million (2022) | |
Owner |
|
Number of employees | 601 (As of 2023[update]) |
Subsidiaries | See subsidiaries |
Website | www www |
SM Entertainment Co., Ltd. (
The label currently represents
History
1989–2000: Creation and first-generation artists
After graduating from California State University, Northridge in the United States, Lee Soo-man returned to Korea and in 1989 established what was then known as "SM Studio" in the Apgujeong neighborhood of Gangnam, Seoul and signed singer Hyun Jin-young. During the 1990s, SM Studio developed an in-house system that looked after all aspects of its artists' careers.[12] Lee's approach was targeted at teenage audiences, and took a holistic view of the qualities needed to become a successful entertainer.[13] In February 1995, the company changed its name to SM Entertainment and set up its capital fund.[14] SM then developed an in-house production system and created a string of successful artists, including boy band H.O.T. in 1996, girl group S.E.S. in 1997, boy band Shinhwa in 1998, R&B duo Fly to the Sky in 1999, and soloist BoA in 2000.
Jung Hae-ik was appointed CEO at the time of SM's official reestablishment in 1995,[15] and was succeeded by Kim Kyung-wook in 1998.[citation needed]
2000–2005: Affiliations and second-generation artists
The early 2000s saw the disbandment of both H.O.T (in 2001) and S.E.S (in 2002).[16] Shinhwa departed to a new agency, and new acts like the duo Isak N Jiyeon and the boy band Black Beat failed to attain the popularity of previous SM artists.[16] In December 2000, SM established an affiliate company called Fandango Korea.[17] In January 2001, the company founded an overseas division, SM Entertainment Japan.[18] Around the same time, the company was approved for listing on KOSDAQ, and SM established an affiliation with the Japanese major label Avex Trax. SM also formed the subsidiaries BM Entertainment and Cid. K Entertainment (under which the girl groups M.I.L.K. and Shinvi were signed, respectively), but they later dissolved when their groups disbanded.[citation needed]
In late 2002, SM was awarded the Grand Prix of Ministry of Culture and Tourism for the Culture Contents for Export Award in music.[19]
In 2003, SM became affiliated with Starlight Corporation Ltd. and C-Cube Entertainment Corporation.[citation needed] That same year, the company debuted five-member boy group TVXQ. The following years saw the debuts of artists such as TRAX (2004), The Grace (2005), and Super Junior (2005).
2005–2010: Expansion and international artists
In 2005, Kim Young-min became the company's third CEO,
In May 2008, the
2010–2012: Joint and further ventures
In February 2010, after two decades on SM's board of directors, founder Lee Soo-man resigned from his position in order to "focus more energy on SM's overseas business, new business management, and artist development."[21] In March of the same year, KMP Holdings was established as a joint venture between SM, YG Entertainment, JYP Entertainment, Star Empire, Medialine, CAN Entertainment, and Music Factory.[22] The firm's first release from SM was Super Junior's fifth studio album, Mr. Simple, which marked the end of SM's self-distribution. In May, SM announced its highest ever first quarter operating profits, at KR₩10.4 billion, up 471% from the same period the previous year. Gross revenue was reported at KR₩22.7 billion, a 58% increase on the previous year.[23]
In April 2011, SM, YG, JYP, KeyEast, AMENT, and Star J Entertainment came together to form United Asia Management, a joint investment agency geared towards advancing Asian music worldwide. That August, SM joined with Thai media company TrueVisions to create an international joint venture, SM True.[24]
In 2012, SM debuted the large-scale boy group
2013–2016: Third-generation artists and new music ventures
In 2013, SM C&C acquired Hoon Media (a production company led by Lee Hoon-hee, responsible for KBS serials
In January 2014, SM and the other six talent agencies behind
In August 2015, SM partnered with sports marketing company IB Worldwide to create Galaxia SM, responsible for golfer
In January 2016, founder Lee Soo-man held a conference at the SM Coex Artium, announcing plans for a new boy group, NCT an acronym for Neo Culture Technology, with "unlimited members".[44][45] Its first sub-unit, NCT U, released two debut singles in April 2016.[46] NCT has since expanded to three more units - NCT 127 in July 2016,[47] NCT Dream in August 2016,[48] and the China-based unit WayV in January 2019.[49] The sub-label Label V manages WayV.[49] With members debuting yearly from 2016 to 2020, NCT as a whole currently has 20 members.[50]
At the beginning of 2016, the company opened a restaurant,
2017–2022: NCT expansion, business expansion and the end of "SM 2.0" era
On February 16, 2017, a source from the task force in charge of the international K-pop academy has plans to open this upcoming September. The Gangnam-based academy is a collaborative venture with the private
In March 2018, SM acquired entertainment agency KeyEast and drama production company FNC Add Culture, a subsidiary of FNC Entertainment.[60] Two months later, FNC Add Culture changed their name to SM Life Design Group.[61] On October 2, 2018 it was revealed SM had acquired Million Market, home to singer-song writers, rappers and R&B singers.[62] In October 2018, SM partnered up with Trans Media of Indonesia, which was owned by CT Corp.[63] In February 2019, Trans Media and SM signed their Heads of Joint Venture Agreement together.[64] Later, on the same month, SM opened its Indonesian office in Jakarta.[65][66]
In January 2019, SM debuted NCT's China unit, boy group band
By April 2020, it was announced that SM and Naver had signed a Memorandum of Understanding (MOU) with purpose to expand the reach of concerts to global audience. The joint efforts leads to the creation of Beyond Live, a series of online live concerts, which were created in light of the ongoing COVID-19 pandemic.[73] On April 20, SM released the first trailer on their official YouTube channel announcing the upcoming series of live concerts dubbed as the "new era of live concert", with the first live show to be headlined by SuperM.[74] The concerts are hosted on Naver's V Live app and made available to audience from more than 200 countries. On August 3, Naver invested ₩100 billion in SM. This would be used for their subsidiaries SMEJ Plus and Mystic Story, as well as plans for merging their fanclubs into V Live's Fanship platform and developing more Beyond Live concerts.[75] A day later, SM announced its partnership with JYP Entertainment to establish Beyond Live Corporation, a joint company for producing Beyond Live concerts.[76][77] SM Coex Artium closed in June 2020.[78] A venue located in Changwon, which has been planned since 2016, will replace it.[79] In addition to the new complex, SM partnered with Jongro Haneul Education to launch SM Institute, an educational facility to train local and international aspiring artists; the institute is expected to open in March 2021.[80] On June 12, it was announced that SM partnered with Seoul Philharmonic Orchestra to release orchestral versions of their artists' most popular songs under the label SM Classics.[81][82] In October 2020, SM announced that Aespa, their first new girl group in six years, would debut with their digital single "Black Mamba" on November 17.[83][84]
On December 27, 2021, SM announced the creation of their rotational all-female supergroup Girls On Top. The group's first lineup, Got the Beat, consists of BoA, Taeyeon and Hyoyeon from Girls' Generation, Seulgi and Wendy from Red Velvet, and Karina and Winter from Aespa. The group released their debut single "Step Back" on January 3, 2022.[85]
In 2022, SM terminated its
2023–present: Announcing "SM 3.0" era and major adjustments
On February 3, 2023, SM released a video titled "SM 3.0: Producing Strategy Multi 'Production Center/Label' System" on their official YouTube channel, in which co-CEOs Lee Sung-soo and Tak Young-jun revealed that the label is passing from its "2.0" era to the "3.0 era", with major adjustments to come concerning the label's operations. These include shifting from a one-man production system led by founder and executive producer Lee Soo-man and his private production house to a system under which multiple production teams, both internal and external, would supervise music production and artist promotions. A goal of the new system is to avoid production delays.[87][88] On February 6, it was announced that Kakao had purchased a 9.05% stake of SM Entertainment, becoming the company's second-largest shareholder at the time.[89][90] The next day, Lee Soo-man filed an injunction against SM Entertainment for its issuance of new shares and convertible bonds to Kakao, citing the deal between the companies is "illegal" without his permission as a largest shareholder.[91][92] Two days later, it was announced that Hybe Corporation had become SM Entertainment's largest shareholder after acquiring a 14.8% stake from Lee Soo-man for approximately 422.8 billion won,[93] with the company subsequently acquiring Galaxia SM's 1% stake on March 3, increasing their share to 15.8%.[94]
On March 3, 2023, South Korean court issued an injunction against SM Entertainment deal with Kakao.
On May 24, 2023, SM released a video titled "SM 3.0: NEW IP 2023" on their official YouTube Channel, in which the CEO Jang Cheol-hyuk announced the company's plans for the year.[104] This includes the creation of a new NCT sub-unit based in Japan, which will mark the end of the group's limitless concept following the addition of 2 new trainees of Japanese and Korean nationalities.[105] Furthermore, current members of the group, Sungchan and Shotaro, will be leaving to re-debut in SM's new boy-group along with trainees who were previously revealed to join NCT.[106][107] On July 31, 2023, SM announced this boy group would be named Riize, a combination of the words rise and realize with a debut set for early September.[108]
On August 1, 2023, SM Entertainment announced that they will form a joint venture division with Kakao Entertainment in
On November 16, 2023, SM Entertainment signed agreement with British entertainment company Moon&Back to debut a new British boy group.[112][113]
On February 8, 2024, SM Entertainment announced that they had recruited 84 composers through their subsidiary Kreation Music Rights and plans to debut four new artists this year including NCT Wish, a new girl group, virtual artist Naevis which previously schedule to debut last year and a British boy group.[114][115]
Divisions
- SM Studios[116]
- SM C&C (since 2012)
- SM Life Design Group (2018)
- Dear U (2017)
- Mystic Story (since 2017)
- KeyEast (since 2018)
- Dream Maker Entertainment (2006)
- SM Brand Marketing (2008)
- ESteem (since 2015)
- Galaxia SM (since 2015)[40]
- SM Town Planner (2017)
- SM Culture Partners (2022)
- Studio Kwangya (2022)[117]
- Kreation Music Rights (2023)[111]
- Kustomade (2024)
- Studio White (2023)[118]
Branches
- SM Japan (2001)
- SM USA (2008)
- SM True (2011), joint venture with True Corporation of Thailand
- SM Entertainment Beijing (2012)
- SM Entertainment Indonesia (2019), joint venture with Trans Media of Indonesia[119]
- SM Entertainment Vietnam (2020)[120]
Labels
LIC stands for Labels In Company and is SM Entertainment's in-house label were introduced following SM 3.0.[121]
- ScreaM Records: An exclusive label established in 2016 to focus on the electronic dance music genre.[122]
- Label V: An exclusive label established in 2019 to manage WayV's activities in China.
- SM Classics: A classical music label established in 2020 in partnership with Seoul Philharmonic Orchestra.
Former labels
- Baljunso: A South Korean indie record label founded in 1991 and acquired by SM in February 2014.[123] The label is now defunct.
- Label SJ: An exclusive label established in 2015 to manage Super Junior. It was officially shut down in March 2023 due to the group being moved to SM's new production center.
- Woollim Entertainment: A South Korean record label and entertainment company founded in 2003. In August 2013, SM acquired the label and merged it into their subsidiary SM C&C as Woollim Label.[124] In March 2016, SM C&C decided to spin off their music content business with Woollim.[125]
- All I Know Music (AIKM): A hip hop label founded by Mystic Story. It became part of SM in 2019 following their acquisition of Mystic Story. The label is now defunct.
- Million Market: A South Korean record label founded in 2012. It was acquired by SM in October 2018.[126]As November 2023, the remained shares of SM had acquired by Chairman Cha Won, a major shareholder of BPM Entertainment.[127]
Artists
Discography
Filmography
Controversies
Contractual disputes
JYJ (TVXQ)
In late July 2009, three of the five original members of SM boy group
Their statement read, "(They) have had health problems and finally reached their physical limits, but SM continued to send them abroad and plan excessive activities. Thus, the three members have started to hope they will be able to continue their careers as they wish, instead of being used as tools for the agency's profits."[134]
The court ruled in the favour of the three ex-members. In response, SM held a press conference claiming that the lawsuit was fraudulent, and filed an injunction.
On November 28, 2012, during a voluntary arbitration at the Seoul Central District Court, SM and JYJ reached a mutual agreement to terminate all contracts between the two parties and not to interfere with each other's activities in the future, concluding the lawsuit.[140] SM reportedly stated that they had decided to end the litigation "to avoid bringing additional harm to U-Know Yunho and Max Changmin, who are active as TVXQ, and to avoid making any more unneeded issues."[141][142]
Han Geng
On December 21, 2009, five months after the three former TVXQ members filed their lawsuit and while the dispute was still active, Han Geng, the only Chinese member of Super Junior, also filed a lawsuit against SM. Han Geng filed for similar reasons: unfair profit distribution, and an unfair thirteen-year contract that contained provisions in SM's favor that he was not allowed to revise or end.[143] The artist's friend and later manager Sun Le also submitted a statement to the Korean courts citing SM's violation of Han Geng's rights, which was later leaked via the internet.[144] The statement argued that SM had discriminated against Han Geng financially as well as in terms of management.
On September 27, 2011, Han Geng's departure from Super Junior was made official when legal representatives of both Han Geng and SM released a joint statement saying that "Han Geng and SM Entertainment have amicably settled on a mutual agreement, and the lawsuit was able to come to a close after Han Geng submitted his 'Notice of Withdrawal of Appeal.'"[145][146]
Kris Wu
On May 15, 2014, Kris Wu, a Chinese-Canadian member of Exo, filed a lawsuit to terminate his contract with SM, as first reported by Chinese news portal Sina.[147][148] He was represented by Cho Bum-suk, the same lawyer that handled Han Geng's case. Kris, whose real name is Wu Yifan, was quoted as saying, "The company has treated me like a machine part or as an object of control rather than presenting a vision as an entertainer."[149][unreliable source?] He left the group in the same month that the lawsuit was made public, while the rest of the group continued to promote their single "Overdose." On July 21, 2016, Kris officially parted ways with EXO, although his contract with SM remained valid until 2022.[150][unreliable source?]
Jessica Jung
On September 29, 2014,
I was excited about our upcoming fan events only to shockingly be informed by my company and 8 others that as of today, I'm no longer a member. I'm devastated – my priority and love is to serve as a member of GG, but for no justifiable reason, I am being forced out.[151]
The following day, Jung released a statement claiming that in August 2014 her fellow group members and SM had been positive about the launch of her fashion business, Blanc and Eclare. As of early September, she claimed, they had all changed their stance, and she was directed to either close the business or cease promotions as a member of Girls' Generation. She claimed to have received the day before a "one-sided notice" asking her to leave the group.[152]
However, according to SM, Jung had unilaterally informed them in early spring that she would leave the group after one more album. But before agreements could be made, she had set up her independent business, which caused problems for the group's professional schedules. This prompted management to begin promoting Girls' Generation as eight members rather than nine, with the intention of announcing the news; however, Jung had already "posted her own perspective". The company then stated that the group would henceforth continue as eight, while they would still manage Jung's individual schedule.[153] In the days immediately after this news came to light, company stocks dropped by KR₩3,350 per share, from KR₩40,750 to KR₩37,400, losing SM a total of KR₩69 billion (approximately US$65 million).[citation needed]
On August 6, 2015, Jung and SM reached an agreement to terminate her contract, with Jung stating, "This release is to confirm that SM Entertainment ('SM') and I have officially parted ways. I will cherish the many years we spent and I wish SM the best of luck in all of its endeavors."[154][unreliable source?]
Lu Han
On October 10, 2014,
No Min-woo
In April 2015, No Min-woo, a former member of TRAX, filed a lawsuit against SM for subjecting him to an unlawful seventeen-year contract.[159] No alleged that SM had also interfered with his career after he had left the company, and sought KR₩100 million in damages.[160] No lost his lawsuit against SM on July 21, 2016.[161][unreliable source?]
Huang Zitao
On August 24, 2015,
Chen, Baekhyun, and Xiumin
On June 1, 2023, Chen, Baekhyun, and Xiumin from Exo simultaneously ended their exclusive contacts with SM and took legal action against the company on the grounds of overdue payment and unreasonable deals. All three stated that they had requested clear and calculated records of their earnings; however, SM allegedly failed to disclose this information to them. Additionally, their legal representative, law firm LIN, stated that the company forced their artists to sign exclusive contracts lasting between 12-13 years, then demanded that artists renew their contracts to last for a total of 17-18 years. The three believed that SM was exerting their power to force their artists into unfair "slave contracts" which violated existing laws regarding the entertainment industry. They therefore chose to pursue legal action against SM to act as a voice for other artists in the industry.[164][165][unreliable source?]
On June 19, SM Entertainment and Exo members Chen, Baekhyun, and Xiumin jointly announced that both parties had resolved their differences over the contract dispute with the members deciding to stay with the agency.[166]
2009 MAMA Awards boycott
On November 21, 2009, SM boycotted the
Fair Trade Commission scrutiny
Artist contracts
In 2010, the Korea Fair Trade Commission (KFTC) undertook an investigation into SM's policies, especially regarding artists' contract terms, and concluded that they were unfair. Artist contracts were subsequently reduced by a length of three years, and there was a reduction in the penalties for breach-of-contract violations. All the artists signed under SM at the time re-contracted with the agency under the new terms.[169]
Price rig
SM was also one of fifteen companies sued and fined by the KFTC for price rigging in 2011.[citation needed]
In 2012, SM was accused of colluding with music distributors, but was cleared of the charge. On August 16, the Seoul High Court revealed their verdict on the issue: "The KFTC has canceled all corrective orders against SM, and the lawsuit costs will be paid by the defendant."[170]
Unfair sales practices
In July 2023, the Korea Fair Trade Commission launched an investigation into several entertainment agencies, including SM Entertainment, over suspicions of engaging in unfair photocard sale practices.[171] The case involved entertainment agencies creating multiple different merchandise items and inserting photocards of their idols to influence buyers' purchasing decisions. Additionally, these agencies manipulated production supplies, encouraging fans to purchase large quantities of merchandise.[172]
Philanthropy
On February 13, 2023, SM donated 200 million won to help in
Notes
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{{cite news}}
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External links
- Media related to SM Entertainment at Wikimedia Commons
- Official website