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Watch: SM Entertainment Executives Detail Global Expansion And Investment Strategies In New Video

SM Entertainment (hereafter SM) has released a new YouTube video on their plans for global expansion as well as their investment strategy.

In the latest of their series of videos, SM’s executives COO Tak Young Jun, Inside Director Park Jun Young, CFO Jang Cheol Hyuk, and CEO Lee Sung Su discuss their global and investment strategies as well as their goals for SM 3.0. This is third and fourth part of SM’s “4 Key Growth Strategies” and is the follow-up to their video explanations on their IP (intellectual property) strategy (multi production center/label system) and business strategy (music streaming, IP License, etc.).

The following are their three main points for their SM 3.0 global strategy:

  1. 3-step Global Business Expansion: support from Korean HQ & set-up completion of local production center with business unit.
  2. Global Expansion Model considering regional characteristics (Japan, Americas, Southeast Asia) and SM’s experience.
  3. Aiming additional 260 billion won (approximately $201 million) revenue from 7 domestic multi production centers and three local production centers in 2025.

The following are SM’s three main points for their investment strategy:

  1. Track 1: Secure short-term business capacity and performance—IP production capability build-up and fan platform advancement.
  2. Track 2: Secure mid-/long-term growth engine—investment in new region and technologies for continuous growth.
  3. Goal: Secure necessary foundation to achieve target sales—generate additional 4.8 trillion won (approximately $5.1 billion) in sales & 800 billion won (approximately $617 million) in operating profit in 2025.

Watch SM’s full video below:


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