South Korean entertainment giant SM Entertainment is making a big push into the music publishing industry with its subsidiary Kreation Music Rights (KMR).
Launched in September 2023, KMR has been busy building its arsenal by signing top songwriting talent and acquiring established music publishers, all with the ambitious goal of becoming “Asia’s leading music publisher within the next five years.”
Unlike SM’s core artist management business, KMR focuses on the behind-the-scenes players including songwriters and composers who craft and supply songs to entertainment companies, drama and film studios, game companies, advertising agencies, and more.
“KMR’s top priority is to recruit top global songwriters, not just within SM Entertainment’s network, but also those that work across other major labels,” according to a company release.
In just five months since its launch, KMR has already signed 86 songwriters and has set its sights beyond Korea by establishing a European subsidiary in December to tap into the region’s songwriting talent pool. KMR’s signings in Europe include lyricists who have worked on songs for SM and K-Pop artists for years, as well as creator teams such as Dsign Music (Girls’ Generation‘s Genie, NCT Dream’s ISTJ) and Sunshine (Red Velvet‘s Psycho, NCT 127‘s Highway to Heaven, aespa’s Spicy).
“KMR’s top priority is to recruit top global songwriters, not just within SM Entertainment’s network, but also those that work across other major labels.”
SM Entertainment
North America is also on KMR’s agenda, with plans to establish a subsidiary in the region and forge strategic partnerships. These efforts aim to create a synergy between KMR and SM Entertainment. SM and its largest shareholder, Kakao Corp., in August revealed plans to expand their alliance to North America by merging their units in the region.
In Asia, SM plans to grow KMR into a leading music publishing company within the next five years.
KMR has also bolstered its ranks by acquiring two Korean production teams – MonoTree and The Hub.
MonoTree, led by chief producer Hwang Hyun (known for hits like IVE‘s KITSCH/Not Your Girl and Seventeen’s Good to Me, ONF’s The Wind Blows, and Lee Joo-hyung’s Tattoo), brings a proven track record and a roster of 33 songwriters.
The Hub, under the leadership of Brian You (composer of NMIXX’s Soñar(Breaker) and Break The Wall), is a rising production team that has witnessed an average annual sales growth rate of ~53% from 2020 to 2023. The Hub has added five more producers since joining KMR, bringing the total number of its writers to 13.
Additionally, KMR’s production team also consists of SMASH HIT, led by chief producer Kangta.
The company says these three divisions are structured as CICs (company in company) under KMR. The SM Entertainment unit aims to grow its CICs through new partnerships and investments, it said.
“KMR will create great synergy by integrating the pitching networks and administration systems of each team after the acquisition of MonoTree and The Hub. The number of songs confirmed for use by MonoTree and The Hub this year is 35 and 33, respectively, and KMR expects both CICs to reach its highest sales ever,” SM Entertainment said.
“KMR will create great synergy by integrating the pitching networks and administration systems of each team after the acquisition of MonoTree and The Hub.”
SM Entertainment
Meanwhile, KMR also signed its first artist, Kim Woo-jin, a former SM trainee and Stray Kids main vocalist. The SM unit plans to drop Kim Woo-jin’s first album in April and debut two or more new artist teams this year. The company acquired the exclusive contract rights for artist Kim Woo-jin when it purchased the business of 10X Entertainment last year.
SM said its main goal for the year “is to recruit top global songwriters and… solidify SM’s ‘multi-label’ strategy as part of its SM 3.0 strategy by entering the artist management business based on KMR’s many producers and excellent production capabilities.”
The developments at KMR come as SM’s peer, HYBE, raised its stake in the company in a deal worth 104.3 billion South Korean won ($79 million). HYBE bought 869,948 shares in SM Entertainment from the latter’s founder and former Chief Producer Lee Soo Man. The share transfer arrives a year after a corporate battle between HYBE and Kakao for control of SM.
HYBE’s purchase of shares from Lee Soo Man honors the stock purchase rights included in the terms of a transaction from February 2023 when HYBE first acquired a 14.8% stake in SM from the founder in a deal worth about $335 million, All K-Pop reported.
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