SM Entertainment Establishes Beijing Joint Venture with Tencent Music, Names Zhou Mi as CEO — BigGo Finance

South Korea’s SM Entertainment (041510.KQ) has established a joint venture called STE in Beijing in partnership with Tencent Music Entertainment Group (TME), China’s largest music platform company. Through this entity, the two companies will jointly develop a new Chinese idol group targeting debut within two to three years, while also expanding local management for SM artists active in the Chinese-speaking market.

SM announced the move on the 27th, revealing that Zhou Mi, formerly of Super Junior-M, has been appointed as CEO of STE. The joint venture’s establishment is a follow-up to the memorandum of understanding (MOU) signed by the two companies in May. At that time, the parties agreed to build a cooperation framework in the Chinese-speaking market and to expand business collaboration in areas including local artist discovery, content production, and management.

STE will first pursue a project to launch a new Chinese idol group targeting debut within two to three years. The venture will oversee the entire process, from auditions for artist casting to post-debut local management in China, with plans to support activities optimized for the local market.

Additionally, STE will handle local activity support for SM artists in the Chinese-speaking market. The venture will take charge of Chinese-market management for NCT DREAM’s Renjun and WayV’s Yangyang and Xiaojun, providing localized promotions and various entertainment activities.

New CEO Zhou Mi has spent approximately 20 years as a member of Super Junior-M and as a solo artist, gaining experience across the full spectrum of the K-pop production system. He subsequently served as a director at SM’s China subsidiary, where he acquired management expertise and hands-on experience in the Chinese local market, making him a well-rounded figure across the entertainment business.

In his inaugural remarks, he said, “We will combine SM’s IP and content production capabilities with the characteristics of the Chinese-speaking market to deliver differentiated content,” adding, “As a bridgehead connecting the two companies, we will create meaningful results.”

The establishment of this joint venture is being interpreted as a signal that SM is accelerating its push into the Chinese market. SM has been building influence in the Chinese-speaking market through its own artists such as NCT and WayV, and with the creation of STE, the company is now expanding its business scope to include local artist discovery and development. Particularly noteworthy is the access to distribution channels and promotional infrastructure secured through the partnership with TME, China’s largest music platform.

China’s entertainment market has become a focal point for global entertainment companies in recent years as the domestic idol industry has grown rapidly. Observers note that the SM-TME collaboration, which combines the K-pop production system with a local platform, could influence the competitive landscape of China’s idol market going forward.