Four Major Entertainment Companies Considering Joint Venture Formation

HYBE, SM Entertainment, JYP Entertainment, and YG Entertainment are exploring the establishment of a joint venture to jointly operate concerts and festivals. As of April 16, 2026, the Fair Trade Commission is currently processing the corporate merger filing for this venture, and since it is still in the initial review stage, specific business details and operational methods have not been finalized.

This joint venture is planned to be created for the “Phenomenon” project, a large-scale concert and festival initiative aimed at expanding K-culture globally, as promoted by Park Jin-young, chairman of the Popular Culture Exchange Committee. The representatives of all four companies serve as members of the popular music subcommittee, with four individuals including Lee Jae-sang of HYBE, Jang Chul-hyuk of SM Entertainment, Jung Wook of JYP Entertainment, and Yang Min-seok of YG Entertainment included in this committee.

Establishing a Foundation for K-Culture’s Global Expansion

The four companies stated, “We are discussing a public-private cooperation model with the Popular Culture Exchange Committee to facilitate the global expansion of the K-culture industry,” explaining that pursuing the establishment of this joint venture is intended to explore the potential for expanding K-pop and K-culture in global markets. This effort is viewed as part of strategic collaboration to ensure the sustainable global growth of the K-pop industry.

Recent Business Trends of Key Companies

Lee Jae-sang, CEO of HYBE, said during a conference call on September 21, 2023, “Inefficient elements have been streamlined... now focusing on growth.” HYBE recorded an operating profit of 38.6 billion won in the first quarter of 2023, representing an 18.5% increase compared to the same period the previous year. SM Entertainment reported an operating profit of 52.9 billion won in the second quarter of 2024, showing a 11% rise from the prior year’s corresponding period. JYP Entertainment demonstrated its global popularity in February 2025 when a single by the group topped both the new song chart and the trend index chart on QQ Music, China’s largest music platform.

Outlook for the Phenomenon Project

The Phenomenon project is a K-culture expansion initiative led by Chairman Park Jin-young, aiming to boost worldwide recognition of K-pop and K-culture through large-scale concerts and festivals. As of April 16, 2026, the project is in the initial stages of setting up the joint venture, with further development expected in the future.