[Dispatch=Reporter Lee Ah-jin] SM Entertainment is moving to capture the Chinese entertainment market.

SM Entertainment announced on the 27th, "We have established a joint venture 'STE' in Beijing, China with Tencent Music Entertainment Group."

The company was launched based on a business agreement signed by the two companies in May. This is a move to establish a full-scale cooperation system in the Chinese-speaking market.

The representative director is Jo Mi, from Super Junior-M. The first project will introduce a Chinese rookie idol group. The target is debut within two to three years.

STE will oversee member casting and auditions through to post-group debut local management. It will lead overall activities tailored to the Chinese market.

It will also support local activities of SM's Chinese artists. It will be in charge of Chinese market management for NCT Dream's Renjun and WayV's V and Yangyang, Xiaojun, and others.

Representative Director Jo Mi stated, "We will present differentiated content by combining SM's IP and content production capabilities with the characteristics of the Chinese-speaking market."

<Photo provided by STE>