SM Entertainment turns new page under Kakao amid K-pop headwinds

Agency tie-ups and technology seen as potential drivers for renewed growth

20230331N Kpop

Members of boy band NCT Dreams perform in Suwon, South Korea, last year. K-pop has gained global recognition in recent years, but has struggled to maintain momentum. © Reuters

KOTARO HOSOKAWA, Nikkei staff writers

SEOUL -- While the battle for control of prominent K-pop agency SM Entertainment is over, the company faces the challenge of a plateauing industry.

The high-profile takeover battle -- a first for the industry -- concluded with South Korean internet conglomerate Kakao gaining a 39.9% stake in SM this week.

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