Korean entertainment companies SM Entertainment, HYBE, and YG are positioning themselves for a return to China, establishing local subsidiaries in anticipation of a potential lift to the nine-year Hallyu ban. The move comes amid improving South Korea-China relations under the Lee Jae-myung administration.
China had once been a major market for Korean entertainment, but activities for Korean artists have been restricted since the deployment of the THAAD missile defense system in 2017.
SM Entertainment has taken a proactive approach, partnering with Tencent Music earlier this year and acquiring a 9.66% stake, making it the second-largest shareholder. The company is now working with Tencent to oversee content production, distribution, and fandom marketing, with plans to debut a China-based group within the next two to three years. SM’s strategy aims to combine its idol and content production expertise with Tencent’s platform reach to create a new “idol success model” in China.
Meanwhile, HYBE established a Chinese subsidiary, HYBE China, in Beijing, marking its fourth overseas branch after Japan, the U.S., and Mexico. The subsidiary is expected to support local activities of HYBE Music Group artists and strengthen operational stability in the Chinese market.
YG Entertainment has also reorganized its China operations by converting YG Beijing into a direct subsidiary, streamlining decision-making for its local business.
Industry insiders say the trajectory of Korean entertainment in China may hinge on a potential meeting between Presidents Lee Jae-myung and Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju this October. Experts predict that if Korean artists are allowed to perform in China, it could become a major growth driver for South Korea’s entertainment industry.
Source: Chosun Daily
