Kakao Entertainment and SM Entertainment merge their North American arms, to expand the K-pop industry globally.

Earlier this year, Kakao Entertainment bought a significant stake in SM Entertainment. Both are South Korean entertainment companies that are leading players in the K-pop industry. The integration hopes to expand this industry into global markets, including Europe, while strengthening their worldwide distribution capabilities and building a global 360-degree management system.

Kakao and SM Entertainment will partner with global labels, as well as local experts, entertainment companies and artists, furthering their support for artists’ international activities, such as album releases, performances and promotions. The merger is expected to be completed before the end of the year.