In a move that's got K-pop fans buzzing, Chinese music giant Tencent Music Entertainment has snapped up a 9.7% stake in SM Entertainment—the powerhouse behind acts like EXO, NCT, and aespa—for a cool $177 million. That makes Tencent the second-biggest shareholder in SM, right behind South Korea's Kakao Corp. The shares came from Hybe, the company behind BTS, which decided to cash out to focus on its own projects.
But here's where it gets interesting: this deal comes just as whispers grow louder that China might finally be loosening its tight grip on Korean pop culture. Remember the unofficial "K-pop ban" that started back in 2016 after political tensions between China and South Korea? It made it nearly impossible for K-pop groups to perform, sell albums, or even trend on Chinese social media. Now, with signs of a thaw, companies like SM are eyeing a major comeback in the world's biggest market.
SM and Tencent aren't wasting any time. They've already announced plans to team up on new idol groups, expand IP projects, and—fingers crossed—bring K-pop concerts back to China. For SM, it's a golden chance to tap into Tencent's massive user base on platforms like QQ Music, while Tencent gets to beef up its global music portfolio.
Fans are hopeful this could mean more collaborations, more music, and maybe even their favorite idols performing in China again. After years of missed opportunities, this deal might just be the start of a fresh K-pop wave hitting Chinese shores. One thing's for sure—the game is changing, and the music world is watching.
Refrences -
https://www.axios.com/2025/05/27/tencent-k-pop-china
-Reported by Rimi Majumder
Intern at The Korean Academy
Korean News Analysis and Reporting
