{"id":254137,"date":"2026-03-30T20:00:42","date_gmt":"2026-03-30T19:00:42","guid":{"rendered":"https:\/\/www.musicbusinessworldwide.com\/?p=254137"},"modified":"2026-04-01T12:04:11","modified_gmt":"2026-04-01T11:04:11","slug":"sm-entertainment-co-ceos-daniel-jang-dmitry-yj-tak-talk-creative-transformation-the-k-pop-firms-ai-strategy-and-what-success-looks-like","status":"publish","type":"post","link":"https:\/\/www.musicbusinessworldwide.com\/sm-entertainment-co-ceos-daniel-jang-dmitry-yj-tak-talk-creative-transformation-the-k-pop-firms-ai-strategy-and-what-success-looks-like\/","title":{"rendered":"‘We must continue evolving how K-pop is made.’"},"content":{"rendered":"

MBW\u2019s World Leaders is a regular series in which we turn the spotlight toward some of the most influential industry figures overseeing key international markets. In this feature, we speak to <\/b>SM Entertainment Co-CEOs Daniel Jang and Dmitry YJ Tak. World Leaders is supported by SoundExchange<\/a>.<\/b><\/p>\n

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SM Entertainment<\/strong>, the company that helped build K-pop, is reinventing itself.<\/p>\n

Founded in 1995 by Lee Soo-man (who exited the firm in 2023), SM<\/strong> is one of the Korean industry\u2019s major players.<\/p>\n

Its trainee system and production methodology helped establish the template for the modern K-pop business, while acts like BoA, TVXQ, Super Junior<\/strong>, and Girls<\/strong>\u2019 Generation<\/strong> introduced the genre to international audiences in the 2000s.<\/p>\n

Korean technology giant Kakao<\/strong> became SM\u2019s largest shareholder in 2023, the same year that SM<\/strong> launched an ambitious in-house music publishing company, Kreation Music Rights (KMR).<\/p>\n

Today, under Co-CEOs Daniel Jang<\/strong> and Dmitry YJ Tak<\/strong>, SM\u2019s roster spans multiple generations \u2013 from those early pioneers to global phenomena like EXO and NCT, to newer acts including aespa, RIIZE, and Hearts2Hearts.<\/p>\n

SM recently launched<\/a> its \u201cSM NEXT 3.0\u201d strategy \u2013 a blueprint built on more aggressive M&A activity, deeper AI integration, and a restructuring of how music is produced at the company.<\/p>\n

Explains Jang: \u201cUnder SM NEXT 3.0, we have retained our five \u2018Multi-Production\u2019 units but fundamentally redesigned how they operate. Specifically, we established three core pillars \u2013 the Artist Center, the Creative Center, and the A&R Center \u2013 and transitioned to a matrix-based, agile operating model. In this structure, functional teams work fluidly across all five production units, enabling greater coordination and flexibility.\u201d<\/p>\n

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The strategic overhaul arrives amid strong momentum at the company.<\/p>\n

SM posted<\/a> consolidated revenues of KRW 319 billion (approximately USD $220 million) in Q4 2025, up 16.6% YoY,<\/strong><\/span> fueled by booming concert activity and merch sales.<\/p>\n

SM\u2019s quarterly concert revenue jumped 53.6% YoY<\/strong><\/span> in Q4, with Super Junior\u2019s 20th anniversary world tour selling out globally. Meanwhile, aespa, NCT DREAM<\/strong>, RIIZE<\/strong>, and NCT<\/strong> WISH<\/strong> have all launched major tours in recent months, plus EXO will return to the road in 2026 following their recent comeback, as TVXQ mark two-decades-plus with stadium concerts in Japan.<\/p>\n

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NCT DREAM performing live at SMTOWN in London<\/figcaption><\/figure>\n
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Dmitry YJ Tak joined SM in 2001 as an in-house artist manager. Today, as co-CEO, he oversees both IP production and artist management.<\/p>\n

He explains: \u201cNew artist development sits directly under CEO-level oversight [at SM], so I remain closely involved from the earliest planning stages. Setting the right direction at the outset is critical.\u201d<\/p>\n

Co-CEO Daniel Jang<\/strong> began his career as a certified accountant before joining SM as CFO in 2022. He now leads company-wide strategy and organizational design.<\/p>\n

\u201cMy role is to build systems that allow creative professionals to operate with both autonomy and accountability,\u201d he says. \u201cIn a creative company, sustainable growth depends not only on strong ideas, but also on strong systems.\u201d<\/p>\n

Here, Jang and Tak discuss SM\u2019s creative transformation, its localized IP ambitions, the company\u2019s AI strategy, and what success looks like…<\/p>\n

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You\u2019ve confirmed a new boy group will debut in 2026, having been developed via the televised reality program, Reply High School<\/i>. What gap in SM\u2019s roster is this group designed to fill?<\/b><\/h6>\n

Dmitry YJ Tak: <\/b>The new boy group is not simply a roster expansion. It is part of our broader global strategy, where we segment strategic markets by artist and tailor our approach accordingly. As fandom demand becomes increasingly layered and sophisticated, we recognized the need for a team that represents a distinct tone and evolution from our existing groups.<\/p>\n

“As fandom demand becomes increasingly layered and sophisticated, we recognized the need for a team that represents a distinct tone and evolution from our existing groups.”<\/p>\n

Dmitry YJ Tak<\/b><\/span><\/p><\/blockquote>\n

SMTR25 serves as the starting point of that vision \u2014 a pre-debut platform that allows audiences to experience the members\u2019 growth journey in real time. Through the reality program Reply High School, we are gradually showcasing their skills, personalities, and team dynamics while building narrative depth ahead of debut.<\/p>\n

With distribution extending beyond Korea to Japan, Thailand, Taiwan, the U.S., and Europe, SMTR25 also establishes early international touchpoints, laying the foundation for a strong global presence from the outset.<\/p>\n

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What other priority artist projects are you most excited about this year?<\/b><\/h6>\n

Tak:<\/b> In addition to the debut of our new boy group, we are celebrating NCT\u2019s 10th anniversary with a series of concerts and special projects reflecting on their decade-long journey and deepening their connection with fans.<\/p>\n

We also have major releases and tours planned for aespa, RIIZE, and NCT WISH. In March, Hearts2Hearts will celebrate their first anniversary with their first U.S. showcases in Los Angeles and New York.<\/p>\n

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Hearts2Hearts<\/figcaption><\/figure>\n
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On the legacy side, EXO will return to touring following their recent comeback. TVXQ will mark their 22nd anniversary with large-scale stadium concerts in Japan, while Super Junior\u2019s 20th anniversary world tour \u2014 which has consistently sold out \u2014 will conclude successfully this year.<\/p>\n

Across groups, solo artists, and unit activities, we will continue delivering diverse projects. With our Multi-Creative system now firmly established, our priority is ensuring that each project fully reflects the artist\u2019s unique identity while maintaining a consistently high level of creative execution.<\/p>\n

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SM has historically been credited with pioneering K-pop\u2019s global expansion. What does SM need to do today to differentiate itself from other players?<\/b><\/h6>\n

Tak:<\/b> We must continue evolving how K-pop is made. SM has never relied on chance success. Over the past 31 years, we have transformed the collective expertise of our creators into structured systems and embedded them into our production framework. That heritage remains our foundation.<\/p>\n

Our focus now is making that system more flexible and artist-specific, allowing us to execute tailored production and market strategies with greater precision. At the same time, we continue to build on what we call \u2018Pink Blood\u2019 \u2014 a brand identity shaped by audiences who recognize and support SM\u2019s experimental sound and uncompromising creative standards.<\/p>\n

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SM co-CEOs [L-R] Dmitry YJ Tak and Daniel Jang<\/figcaption><\/figure>\n
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Daniel Jang:<\/b> I also believe that the key lies in strengthening what is difficult to replicate \u2014 our intangible competitive advantage. K-pop is ultimately driven by human creativity and instinct. SM\u2019s strength is not found in a manual, but in a heritage accumulated over decades and embedded in our DNA.<\/p>\n

We must move quickly in a rapidly changing market, but we cannot compromise on quality. Speed and excellence must coexist.<\/p>\n

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How do you balance focus on locally important artists while maintaining the distinct SM creative identity?<\/b><\/h6>\n

Tak:<\/b> The key is a hybrid approach. We preserve the core pillars of K-pop \u2014 artist development, performance discipline, and musical quality \u2014 while adapting storytelling and engagement to resonate locally. Even in localized IP initiatives, SM leads casting, training, and production to maintain creative standards.<\/p>\n

At the same time, we collaborate with strong local partners on management and marketing to ensure cultural relevance. Our production system protects our identity, while local partnerships enable connection and expansion. That balance allows us to grow globally without losing what makes SM distinct.<\/p>\n

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