CJ E&M will be Korea's first entertainment company to establish a corporation in Japan, targeting the global market with Asian music.

On April 28, CJ E&M joined with Japan's major music production company Victor Entertainment to form CJ Victor Entertainment.

CJ E&M and Victor dually invested 51:49 parts for the establishment of the new company CJ Victor. The new company will aim towards the global advancement of Korean and Japanese music, investing in the artist recruitment, training, and management; concert-hosting; fan club events; MD; contents distribution; and publication.

The collaboration is significant not only because of the joining of two major entertainment labels but because it attempts a 360 degree all-around global business strategy in Japan.

Japan's Victor is affiliated with JVC Kenwood, well-known for its media, sounds, and electronics. It has a long 87-year history of offline album distribution and sales, owning 23 music labels.

Unlike Korea, which has a large online music industry, the Japanese music market owes 80% to offline record sales. Knowledgeable in marketing and promotion to aid production, distribution, and sales, Victor's CEO Saito Masaaki also leads the Recording Industry Association of Japan (RIAJ).

Previously, K-Pop's globalization has taken on a licensing format wholly led by local partners. This passive Hallyu had lent K-Pop labels and rights into the hands of local partners, leading to a low profit.

However, the new CJ Victor will be more aggressive in the globalization process of artists through its domestic resources and know-how. With its 360 degree business implementation, profit, speed, and efficiency will all be targeted. While the company will help K-Pop artists' promotions in Japan, it will also recruit and train talented J-pop artists to create an passageway to the global market.

CJ E&M's An Suk Jun stated: "Instead of depending wholly on the artist, it is also important to create a permanent business system where Hallyu can be effectively spread. Our goals are: increasing the chances of success in the local environment through an establishment of partnership, creating Asia-focused content through Japanese and Korean artist recruitment, and expanding the rights to our musicians while joining with US and Chinese partners to create a synergy of global systems."

Victor's Nobuhiko stated: "For the Japanese music industry to expand, we need to expand globally; through partnership with CJ E&M, we will remain competitive in the global market".

Furuya Masayuki, a Korean popular culture journalist in Japan, stated: "I highly commend the joint partnership of Korea's CJ E&M and Japan's Victor Entertainment. CJ Victor's business strategy will not end with globalization but will also lead to the improvement in content quality and expansion of different music business. The collaboration will be a pioneer of the two countries' entertainment business future".

After June, many artists popular in Korea will infiltrate into Japan and begin their attempts at globalization. Japan's musicians will also begin promotions in Korea through CJ Victor as well. Starting next year, Korea's hip-hop and solo artists and rock bands will try their chances at expanding their market.