SM Entertainment Unveils 'Next 3.0' Strategy and New Boy Group as Key Figures Exit

SM Entertainment on Tuesday unveiled a new business and musical roadmap called “SM Next 3.0,” timed to its upcoming 30th anniversary, in a move widely seen as an attempt to steady the agency after a string of high-profile exits. The announcement lands just days after SM confirmed that BoA, its longest-tenured artist and a central creative figure for 25 years, had officially left the company.

Under the new roadmap, SM says it will scrap its existing multi-production structure in favor of a “multi-creative” system that places artists and outside collaborators at the center of production, assigning creative teams flexibly rather than through fixed internal units. The agency also confirmed that a new boy group will debut in 2026, drawing from a group of trainees currently known as SMTR25, who will be introduced through a reality show titled “Reply High School” later this year.

SM's strategy further leans on global expansion, including new partnerships with Tencent Music Entertainment in China and True in Thailand, alongside a push to use artificial intelligence to personalize the fan experience, such as algorithmically recommending songs from its back catalog. In a statement, the company described the plan as not a departure from its roots but an evolution that fuses its musical foundation with technology and a people-first approach.

The timing underscores the pressure SM is under. Founder and former chief producer Lee Soo-man, who shaped the label's sound from H.O.T. to Aespa, left in 2023 and has since launched a rival agency, A2O Entertainment, with longtime composer Yoo Young-jin joining him. Lee is already working on a new China-based girl group and has teased a boy group debut of his own later this year. BoA's departure is seen as especially significant since she served as executive producer of rookie act NCT Wish, guiding everything from concept to production, and many fans credited her with preserving continuity with SM's classic sound.

Meanwhile, elements of that signature style appear to be resurfacing outside the company. Rookie group Alpha Drive One, which debuted under WakeOne on Jan. 12 under executive Nam So-young, a former SM Japan lead who worked closely with BoA, has drawn comparisons to classic SM tracks, with fans noting the involvement of composers previously associated with acts like NCT 127 and Riize.

Music critic Lim Hee-yun said SM's challenge now is defining its identity without the architects who built it. “SM Entertainment's legacy isn't just built on hits — it's built on its own form of artistry,” Lim said, adding that the agency should avoid simply replicating its old sound and instead take fresh creative risks as it enters a new era.

Whether SM Next 3.0 can restore confidence among fans and investors remains to be seen, but the company's leadership appears intent on framing the moment as a rebrand rather than a retreat, positioning technology, global partnerships and a new generation of idols as the pillars of its next chapter.