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HYBE’s Exit: How SM Entertainment x Tencent Music Partnership Brings New Chapter of Global K-pop

Iseul by Iseul
May 31, 2025 - Updated on June 1, 2025
in News
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SM Entertainment Tencent Music partnership

Back in 2023, the corporate war between HYBE and SM felt like K-pop’s version of a hostile takeover drama. You saw headlines fly, statements clash, and fandoms split. And you might’ve even picked a side. Because at the time, the stage was brutal: HYBE wanted control. SM wanted independence. Kakao stepped in. And for a while, it felt like no one truly won. But then, something big happened—quietly. HYBE is gone. And SM Entertainment is building new partnership with one of the world’s corporate giants, Tencent Music by Tencent.

And while this feels like the end of an era, the new partnership between SM Entertainment and Tencent Music might actually launch a new chapter for K-pop. How? Well, dive into what’s next in K-pop with us below.

Table of Contents

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  • HYBE Sells SM Entertainment Shares to Tencent Music: A Survival Mode
    • Meanwhile, SM Entertainment Sealed a Game-Changing Partnership with Tencent Music
    • So What Does This All Mean—for You?
    • The End of One Battle, the Beginning of Something Bigger
    • This Is the K-pop You Helped Build—Now Watch Where It Goes
      • Related Posts

HYBE Sells SM Entertainment Shares to Tencent Music: A Survival Mode

On May 30, 2025, HYBE sold every remaining share it held in SM Entertainment to Tencent Music, cashing out over ₩243 billion (around $178 million USD). No press conference. No exit speech. Just a clean break. The final move in a feud that once felt personal to fans is now complete.

And while the headlines read like a business update, this is actually a clear retreat. HYBE is not repositioning its power. Instead, the company is protecting itself, defending its foundation, for survival.

HYBE chairman Bang Si Hyuk. | Naver
HYBE chairman Bang Si Hyuk. | Naver
HYBE chairman Bang Si Hyuk. | Naver
HYBE chairman Bang Si Hyuk. | Naver
HYBE chairman Bang Si Hyuk. | Naver
HYBE chairman Bang Si Hyuk. | Naver

In recent months, you’ve seen the signs. Prosecutors raided HYBE’s headquarters amid insider trading allegations tied to its YG Plus deal. Chairman Bang Si Hyuk is now under scrutiny for potentially misleading investors and violating securities laws. Add to that the NewJeans–ADOR chaos, the fan outrage, and the growing distrust inside and outside the fandom—and the picture becomes clear.

So, what happens then is—naturally—crisis management. HYBE sold off its SM shares, basically cutting financial ties and letting go of a battle the company could no longer afford to fight. The once unstoppable powerhouse of K-pop is now playing it safe, restructuring its influence, and quietly stepping back from the East Asian market.

Meanwhile, SM Entertainment Sealed a Game-Changing Partnership with Tencent Music

Meanwhile, on the other side of the table, while HYBE was exiting the battlefield, SM Entertainment had apparently taken its own first step to evolve. And don’t you dare blink. Because if you do, you’ll miss the real story.

On May 29, just one day before HYBE’s official exit, SM signed a formal partnership with Tencent Music Entertainment, one of China’s most powerful media forces. By doing so, the company is creating a brand-new strategy. Through this partnership, SM Entertainment and Tencent Music would be building:

  • A new boy group, trained by SM and promoted across China by Tencent
  • IP-based merch, digital photocards, media content, and exclusive fan experiences
  • Live event production—including SMTOWN LIVE Hong Kong in 2026 and national tours in China with full livestream access
SM Entertainment & Tencent Music. | Multiple Sources
SM Entertainment & Tencent Music. | Multiple Sources
SM Entertainment & Tencent Music. | Multiple Sources
SM Entertainment & Tencent Music. | Multiple Sources
SM Entertainment & Tencent Music. | Multiple Sources
SM Entertainment & Tencent Music. | Multiple Sources

This is SM fully embracing the China-first model its founder Lee Soo Man also did with A20. Only now, SM Entertainment building a new expansion backed by Tencent, the gateway to billions of new fans, new platforms, and a reimagined K-pop experience built specifically for the Chinese market.

So What Does This All Mean—for You?

Now, for you, this may feel so distant, like corporate strategy far removed from the music you love. But here’s why it matters: these decisions shape the future of how you discover, stream, and connect with your favorite idols.

If you’re a fan of SM artists, this partnership won’t pull them off global stages—but it will build something new alongside them. Take for example, SM’s boy groups are no longer Korean but also China-focused. Something they co-produce with Tencent and supported by digital collectibles, livestreamed concerts, and exclusive fan content tailored for a growing Chinese audience.

WayV, Chinese Boy group by SM. | DAZED Korea
WayV, Chinese Boy group by SM. | DAZED Korea
WayV, Chinese Boy group by SM. | DAZED Korea
WayV, Chinese Boy group by SM. | DAZED Korea
WayV, Chinese Boy group by SM. | DAZED Korea
WayV, Chinese Boy group by SM. | DAZED Korea

At the same time, if you follow HYBE artists, expect a sharper push into the U.S.—more English singles, more global groups and collaborations, and tighter American partnerships.

HYBE’s global K-pop group, KATSEYE. | Naver
HYBE’s global K-pop group, KATSEYE. | Naver
HYBE’s global K-pop group, KATSEYE. | Naver
HYBE’s global K-pop group, KATSEYE. | Naver
HYBE’s global K-pop group, KATSEYE. | Naver
HYBE’s global K-pop group, KATSEYE. | Naver

In both cases, the ground beneath K-pop has begun shifting. But here’s the good news: it’s growing, indefinitely.

The End of One Battle, the Beginning of Something Bigger

Now, you may be thinking that HYBE’s selling SM’s shares to Tencent as a corporate fallout. But look closer, and you’ll see something else: K-pop branching out in two powerful, intentional directions.

HYBE is planting roots in the West. SM is building bridges in the East. One isn’t replacing the other. They’re both expanding what K-pop can be—and you’re watching it happen in real time.

There was a time when K-pop was just a local wave from South Korea, struggling to reach the global shore. Now, it’s a cultural force moving in multiple directions, with different engines behind it.

The narrative is no longer about one company leading the charge. Instead, you are now entering an era where K-pop is now big enough to grow from multiple fronts at once.

K-pop’s expansion in global market. | AI generated
K-pop’s expansion in global market. | AI generated
K-pop’s expansion in global market. | AI generated
K-pop’s expansion in global market. | AI generated
K-pop’s expansion in global market. | AI generated
K-pop’s expansion in global market. | AI generated

And for the first time, it’s no longer a single company carrying the global expansion.

Because now, HYBE is not alone in driving globalization in K-pop. Now, SM is here—armed with Tencent, equipped with vision, and ready to change how the world sees, hears, and feels Korean music. Together in the partnership, SM Entertainment and Tencent Music are rewriting what K-pop globalization looks like—one Chinese stage at a time.

This Is the K-pop You Helped Build—Now Watch Where It Goes

You’ve been here from the start. Through the highs of historic comebacks and the lows of sudden exits. Through scandals, fandom wars, record wins, and unforgettable stages. You’ve helped build this industry—every stream, every tweet, every lightstick held high was part of the story.

Illustrations of K-pop fans. | Freepik
Illustrations of K-pop fans. | Freepik
Illustrations of K-pop fans. | Freepik
Illustrations of K-pop fans. | Freepik
Illustrations of K-pop fans. | Freepik
Illustrations of K-pop fans. | Freepik

Now, you’re standing at the edge of something new.

HYBE is out. Tencent is in. SM Entertainment is shifting. And the map of K-pop, as you know it, is being redrawn—not by one company, but by a growing network of global players. If there’s one thing this moment proves, it’s that K-pop no longer belongs to a single system. It belongs to the world. And you’re part of that world.

So look closely. Not with worry—but with awareness.

K-pop isn’t collapsing. It’s expanding. Into new models, new territories, and new kinds of fan experiences the world hasn’t seen before. This isn’t the end. It’s the part where the story turns outward—across borders, platforms, and cultures.

And just like always, you’re still in it.

Join us on Kpoppost’s Instagram, Threads, Facebook, X, Telegram channel, WhatsApp Channel and Discord server for discussions. And follow Kpoppost’s Google News for more Korean entertainment news and updates. You can also join our exclusive membership. You might be able to join our upcoming exclusive community events and win exciting prizes!


Related Posts

  • HYBE, CJ, and Kakao Entertainment Aiming for Lee Soo Man Shares in SM Entertainment, Who Will Win?
  • HYBE Corporation Chairman Bang Si Hyuk Scandal: What It Means for K-pop Most Powerful Empire
  • The Idol Incubator: How K-pop Trainee System Becoming Billion-Dollar Engines
  • The Business Cost of Cancel Culture in Korean Entertainment: Lost Deals, Lawsuits, and Careers
  • SM Entertainment Video Statement Went VIRAL + HYBE Labels Responds

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Iseul

A passionate Korean who embodies a deep love for her culture, Iseul finds immense joy in sharing the rich traditions, mouthwatering cuisine, and above all, the captivating music of their homeland.

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