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SM Entertainment Expands To Sports Management With IB World Partnership

By Staff Writer | August 27, 2015 11:49 AM EDT

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One of South Korea's largest entertainment agencies is expanding into different forms of entertainment.

SM Entertainment, South Korea's top entertainment agency, entered into a partnership on Tuesday with IB Worldwide, South Korea's top sports marketing company. SM signed a mutual investment agreement, according to The Korea Times, as a push to enter the world of sports entertainment.

IB Worldwide adopted the name Galaxia SM to launch the venture.

Kim Young Min, the CEO of SM Entertainment, said that the partnership is a move towards the next trend of the Korean Wave, or Hallyu, known as "sportainment."

The move towards combining sports and entertainment comes as South Korean athletes garner attention worldwide. IB Worldwide represents golfer Park Inbee, gymnast Son Yeon Jae, and MLB's Choo Shin Soo, who currently is a right fielder for the Texas Rangers.

Industry insiders said the news comes as SM Entertainment moves to diversify revenue routes, and the company will continue to build partnerships with atypical forms of entertainment in order to create sustainable business plans.

As part of the deal, Galaxia SM will issue new stock, with 11.1 billion KRW (around $9.3 million USD) worth sold to Hyosung Group, IB Worldwide's parent company while SM Entertainment and SM's chairman Lee Soo Man will purchase stocks worth 11.5 billion KRW (~$9.7 million USD.) To complete the partnership, SM will issue 6.5 billion KRW (~$5.5 million USD) in stock to be purchased by Galaxia SM.

The Korea Times reports that SM Entertainment plans to launch a global dining brand next month to continue its strategy. SM Entertainment previously acquired a travel management corporation in 2012, and began expanding in the Korean entertainment industry outside of K-pop to represent actors and television personalities.

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Tagged :  SM, entertainment, ib, sports

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