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Entertainment giants SM, Tencent Music partner to create new Chinese idol group

Published: 29 May. 2025, 17:21 Updated: 13 Jun. 2025, 10:18

KIM JU-YEON
[email protected]

SM Entertainment logo [SM ENTERTAINMENT]

SM Entertainment, the K-pop powerhouse behind aespa and SHINee, will join forces with Tencent Music Entertainment to launch a Chinese idol group within the next three years under a new agreement signed Thursday.

Under the memorandum of understanding (MOU), SM Entertainment will recruit and train the new members of the group, as well as oversee music production, the agency said the same day. Tencent is in charge of promotions and sales of albums and music. The musical group will debut in two to three years.

The two also agreed to collaborate on creating merchandise — such as digital and physical photocards and character goods — producing video content and opening pop-up stores using SM Entertainment's intellectual property (IP) for the Chinese market.

They will also work together in preparing for SM Entertainment artists' tours in the Chinese mainland, including for the upcoming SMTown Live concert set to take place in Hong Kong in 2026. A live concert streaming service using SM Entertainment's Beyond Live augmented reality graphics technology will be launched in China in the hopes of reaching a wider audience.

The two companies expect the deal to maximize the firms' respective expertises, namely SM Entertainment's global IP and content production capabilities and Tencent's retail infrastructure.

The MOU signing comes after Tencent purchased HYBE's entire 9.4 percent stake in SM Entertainment, announced Tuesday.

This makes Tencent the second largest shareholder of SM Entertainment following Kakao and Kakao Entertainment, which own 21.61 percent and 19.89 percent, respectively, for a total of 41 percent.

BY KIM JU-YEON [[email protected]]