RBNZ Raises Interest Rate to 2.75%, Kiwi Dollar Slides 
US Tech Giants’ AI Bond Boom Raises Euro Zone Borrowing Risks 
Shein Shares Slide 9% in Hong Kong IPO Debut 
South Korea Inflation Rises to 3.1% in August 
Global Markets Brace for Fed Rate Hike as Oil Tops $91 
Oil Prices Rise as US-Iran Conflict Threatens Middle East Supply 
Canada Backs €100 Billion Global Defence Bank 
Street Poller Media and The Boom of the Street Interview Ad Industry 
Trump Says ExxonMobil Among Oil Majors Planning Venezuela Return 
Asian Stocks Tumble as Oil Surge Fuels Rate Hike Fears 
Gold Prices Steady as U.S.-Iran Tensions Lift Inflation Risks 
Bank of England Sees Surge in Higher-Risk Collateral 
Australia GDP Beats Forecast, Boosting RBA Rate Hike Bets 
Trump Secures Drug Pricing Deals With Nine Pharma Companies 
CIA-Linked Investor Helped Quantum Systems Expand in US 
Australia Current Account Deficit Widens to A$27.2 Billion 
MongoDB Stock Sinks 14% as Atlas Growth Misses Expectations 
Add as a preferred source on Google
Kakao and SM Entertainment are joining forces to establish a joint venture in the United States, aiming to expand the global influence of their respective artists. The companies are marrying Kakao's vast music distribution network with SM Entertainment's robust IP assets and proven music production prowess.
Kakao and SM Entertainment will form a new entity through their JV. Moreover, with their partnership, the companies are looking to bolster the overseas activities of their respective artists, The Korea Times reported.
The partners revealed their joint venture agreement on Tuesday, Aug. 1, and said they expect to create business synergy in the U.S. amid the snowballing global entertainment market. The cooperation between the firms will merge Kakao Entertainment's music distribution network and multi-label system with SME's global intellectual property assets and tested music production capabilities.
"The establishment of the joint venture in the United States will accelerate Kakao Entertainment's global business growth and expansion of SM Entertainment's musicians," Kakao Entertainment America's chief executive officer, Joseph Chang, said.
"Based on this, we will prove to the world the growth potential of our music businesses, which encompasses the whole process of planning, production and distribution of music and artists' IP."
Kakao Entertainment and SM Entertainment also plan to establish a solid base for their joint business in North America. Their next step after this is to expand and enter the European market.
The Korea Economic Daily reported that the company's business in the U.S. is a 50:50 joint venture. The integrated company is set to be managed by Kakao Entertainment's global strategic officer, Jang Yoon Jung, who has been appointed head of the new office.
Finally, SM Entertainment and Kakao's new company will fully support K-pop artists and musicians. It will help them with album releases, music promotions and help them appear in programs in the U.S.
Photo by: Kakao Entertainment Newsroom
