SEOUL, South Korea (CelebrityAccess) — Kakao Entertainment and SM Entertainment announced the launch of an integrated joint venture with a focus on the United States.
The new joint venture will leverage SM Entertainment’s established pool of intellectual property and high-profile artists with Kakao Entertainment’s music distribution network and multi-label system to help drive international growth for both companies.
According to the two companies, the new venture will help artists expand their global reach and will also provide a platform for discovering and signing new artists and developing and investing in new IP.
As part of the venture, the two companies will also establish a new North American management division, providing support for album releases, concerts, broadcasts, promotions, and more.
Additionally, the two companies will seek to broker partnerships with established international entertainment companies. Artists under Kakao Entertainment’s subsidiary, such as IVE, and SM Entertainment’s aespa, have already announced their plans to expand their reach to international markets, including in North America, within the year.
The new joint venture will be led by Joseph Chang, President of Kakao Entertainment America. In addition to his new duties, he will also continue to serve as Global Strategy Officer (GSO) of Kakao Entertainment and the Chief Business Officer (CBO) of SM Entertainment.
Existing North American operations for both Kakao and SM Entertainment will be folded into the new, consolidated joint venture.
“The new integrated corporation in North America will help us accelerate the global expansion and growth of artists under Kakao Entertainment and SM Entertainment,” said Chang, President of Kakao Entertainment America. “We will prove the growth potential of Kakao Entertainment’s music business, which encompasses planning, production, and distribution of music and artist IP in the global market.”
