Kakao Entertainment and SM Entertainment announced the launch of an integrated corporation in North America, with the aim of accelerating global growth and expansion. The two companies will leverage their respective strengths to create a great synergy in North America. SM Entertainment brings its vast pool of global intellectual property (IP) and production capabilities, while Kakao Entertainment contributes its music distribution network and multi-label system.

With North America being the hub of the global entertainment industry, the integrated corporation will serve as a solid foundation for business cooperation and knowledge sharing. The companies plan to expand their reach into global markets, including Europe, in order to strengthen their presence as a key player of global music industry. The new corporation will help artists from both companies quickly expand their influence around the world, while also actively developing and investing in new IP to further enhance their competitive edge in the global music business.

New momentum will come from the establishment of a global management system, providing comprehensive support for global album releases, concerts, broadcasts, promotions, and more. Additionally, the two companies will pool their global networks and leverage them to form new partnerships with prominent entertainment companies globally and strengthen networks with local experts. Artists under Kakao Entertainment's subsidiary, such as IVE, and SM Entertainment's aespa, have already announced their plans to expand their overseas, including in North America, within the year.

The new integrated corporation will serve as the focal point for these artists to enhance fan communications, grow their fanbase, and further diversify their areas of activity to strengthen their position as global artists. The integrated corporation will also prioritize the discovery of local artists and music IPs in North America, and plan to pursue strategic investment particularly in partnership with overseas labels. The partners will jointly focus on strengthening their competitive edge in the global music distribution market by expanding their network with global record labels and local distribution platforms.