Kakao Entertainment, HYBE, And SM Entertainment Expand Into North America.

South Korean entertainment giants SM Entertainment, HYBE, and Kakao Entertainment are expanding globally by targeting North America. New audition programs and strategic alliances with major North American record labels are crucial to these initiatives.

HYBE announced ‘The Debut: Dream Academy’ global female group audition program on August 28. This initiative selects 20 finalists from 120,000 global entrants to compete for auditions via SNS platforms.

HYBE had been preparing to enter the worldwide market with a North American local record label for two years before launching ‘Dream Academy’ SB Project, Schoolboy Records, and Big Machine Label Group are helping the entertainment conglomerate expand in North America after establishing HYBE America in April 2019.

SM Entertainment and Kakao Entertainment have also escalated their global expansion. Since Kakao Entertainment became SM Entertainment’s largest shareholder in March, the two entertainment companies have increased business coordination. Last August, they formed a local integrated corporation in North America to combine SM Entertainment’s global IP and production skills with Kakao Entertainment’s music and album distribution network and multi-label system.

Jang Yoon-joong, Kakao Entertainment America’s new CEO, said, “The North American integrated corporation will accelerate the global expansion and growth of SM artists and Kakao Entertainment, promoting music, artist development, planning, production, and IP distribution.”

HYBE, Kakao Entertainment, and SM Entertainment’s growth initiatives show a shift in vision that spans the Korean K-pop market and strengthens its influence in the US, the pop music industry’s hub.

Industry experts say K-pop’s major consumer base is transitioning from Asia to North America. Thus, this period is critical for monitoring how these three powerhouses’ rapid rise in North America may affect K-pop’s global influence.