SM Entertainment and Tencent Music establish Beijing joint venture STE, with Super Junior-M’s Zhoumi as CEO
SM Entertainment, one of South Korea's biggest K-pop agencies, has formed a Beijing-based joint venture with Tencent Music Entertainment Group called STE, aimed at developing and managing artists for the Greater China market. The move deepens ties between the two companies following TME's purchase of a 9.38% stake in SM from HYBE in May 2025, and fits into a wider push by SM to build localised idol groups in markets such as China, Thailand and Japan while retaining its core creative identity.
STE, announced on 27 August, will be led by Zhoumi of Super Junior's China-focused unit Super Junior-M, and plans to audition and debut a new Chinese idol group within two to three years. The venture will also take exclusive charge of Greater China management for three existing SM artists — NCT DREAM's Renjun and WayV's Yangyang and Xiaojun. It follows TME's similar tie-ups with other Korean labels, including a joint venture with JYP China and CJ ENM in February and an $80 million investment in The Black Label in May, as China's recorded music market grew 20.1% year-on-year in 2025 to become the world's fourth-largest, according to the IFPI.
In short
- SM Entertainment and Tencent Music launch Beijing joint venture STE
- Super Junior-M's Zhoumi named CEO; new group due in 2-3 years
- Part of wider TME investment drive into South Korean K-pop labels
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The joint venture could give SM artists stronger access to China’s large and growing music market, while Tencent Music brings local expertise and distribution. Developing a Chinese group and tailoring management to the region may create opportunities for artists and audiences while helping SM expand without abandoning its wider creative approach.
The case against
A venture led by a major local platform may concentrate influence over artists’ careers and market access in one commercial partnership. Critics could also question whether localised groups and exclusive management arrangements preserve artists’ autonomy and SM’s creative identity, particularly if business priorities outweigh artistic or cultural considerations.
Explained simply
SM Entertainment is a major South Korean company that develops and manages K-pop acts. Tencent Music Entertainment is a leading Chinese music company, and its platforms and local knowledge could help SM reach listeners and build careers in China.
The new venture, STE, is intended to develop artists for the Greater China market. It will be led by Zhoumi, a member of Super Junior-M, a unit formed with a focus on Chinese-speaking audiences. STE is also due to manage three existing SM artists in the region: Renjun, Yangyang and Xiaojun.
The partnership reflects the growing commercial importance of China’s music market and a wider trend of Korean entertainment companies working with Chinese partners. It gives SM a local base as it seeks to develop artists for different markets while keeping its core creative identity.
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