South Korean Okay-Pop firm SM Entertainment is increasing its presence in Southeast Asia with plans to arrange its headquarters within the area in Singapore the place it is usually trying to launch its retail enterprise.

The plan was confirmed by the leisure agency to CNBC on December 1.

SM Entertainment founder Lee Soo-man instructed The CNBC Conversation final month that the plan might see the creation of a brand new Okay-Pop group known as NCT Singapore, though it’s unclear if it might come to fruition.

Lee, who’s about to get a feature documentary about his life, instructed the information outlet in November that SM Entertainment is recruiting and producing expertise by way of the “Culture Technology” (or CT) system that he developed the place potential singers and dancers undergo 4 phases: casting, coaching, advertising/administration and producing.

“SM’s [production method] has become a model for producing K-Pop, and SM’s CT will expand to become [the] CT of the world. The Future of Culture Technology is the fundamental vision [of] SM Entertainment. And now, I am building a new cultural ecosystem by evolving CT from a culture-making technology to a cultural ecosystem-making technology,” Lee said in a speech at Stanford University in May.

Lee is usually credited for bringing Okay-Pop to the world’s stage. SM Entertainment, which he based in 1995, is behind among the greatest Okay-Pop acts like SUPER JUNIOR, Girls’ Generation, SHINee, EXO, Red Velvet, KANGTA, BoA, TVXQ!, NCT and aespa.

SM Entertainment didn’t disclose how a lot it plans to spend money on its Singapore headquarters, however instructed CNBC that the workplace will even be “managing joint ventures in Indonesia, Vietnam and Thailand, as well as communicating with [its South Korea office] for other related ventures and plans.”

The agency can also be “in the midst of hiring more local talents, which will hopefully increase the full-time staff count,” and can also be “looking at hiring local undergraduates or fresh graduates for internships.”

The Singapore HQ will even see SM Entertainment launching its retail companies together with cafes, merchandise shops and pop-up exhibitions, CNBC experiences.

It comes as the corporate continues to faucet into potential income sources. The firm’s income within the third quarter surged 65.4% 12 months over 12 months to 238.1 billion South Korea Won ($183 million), with web revenue reaching 29.2 billion received.

SM Entertainment already has a presence within the Southeast Asian area. In Indonesia, the corporate’s department has received model endorsements akin to Mie Sedaap and Sasa for Choi Siwon of Okay-pop boy band Super Junior, and Somethinc and Lemonilo for NCT Dream, in keeping with CNBC.

Lee additional instructed CNBC that SM Entertainment is planning to create new teams or subunits akin to NCT Tokyo and NCT Saudi.

In August, the corporate introduced that it’s expanding within the Middle East with the signing of a memorandum of understanding (MOU) with the Ministry of Investment Saudi Arabia (MISA).

The plan contains the promotion of S-Pop (Saudi Pop) through the invention and manufacturing of native artists and the launch of “a metaverse platform to share Korean and Saudi culture.”

News of the Singapore HQ launch comes amid reported tensions between the corporate’s shareholders and Lee. The founder might quit his position as chief producer on the end of the year after SM Entertainment reduce ties with a non-public firm that he totally owns.

Lee stays the most important single shareholder in SM Entertainment.

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