SM Entertainment Eyes US as HYBE Bets Big on India

• KPop Demon Hunters and BTS drive renewed global appetite for K-pop
• BTS’ company HYBE is looking forward to launching an India-centric project after it expanded to the US and Latin America
• While HYBE made the first US move, SM is now shifting from its usual Japan focus towards the West, potentially rivaling HYBE

K-pop’s two top entertainment companies, SM Entertainment and HYBE, are walking on a fresh strategic path that signals a new era for the multimillion dollar K-industry. As one of the earliest pioneers of K-pop, SM is now expanding towards America, moving away slightly from its usual Asia focus. On the other hand, HYBE, which entered into the West, particularly the US first, is now pivoting towards the East, with the high-growth market of India emerging as a key battleground.

SM Entertainment Moves Beyond Japan, Enters America

SM has a wide record of popular legacy acts like BoA, TVXQ, and Shinee, who were particularly popular in Japan, which is K-pop’s most important overseas market. The Japanese music industry is currently valued between $2 billion and $2.5 billion USD (data from International Trade Association, US Dept. of Commerce, and Statista), but SM is expanding aggressively in the West. The agency’s newer acts are also spearheading the same to build momentum. For instance, Riize initiated a North America tour in 2025, while Hearts2Hearts recently staged showcases at the Grammy Museum in Los Angeles and New York.

This push comes amidst a $31.7 billion global recorded music revenue (data of 2025), with the USA and Canada markets accounting for about 40% of it. In a conversation with the Korea Herald, industry expert Lim Hee-yun noted that the timing is important as K-pop’s appeal increases worldwide, driven by projects like KPop Demon Hunters and acts like BTS, which became a  "discovery funnel" for new artists. Such successful ventures further push people in the West to look for more acts and content like them. Although mainstream access is yet to mature further, the demand is surging thoroughly within the existing audience base, as they look forward to the next-gen of the genre.

HYBE Targets India as Next Growth Frontier Amidst Chinese Regulatory Pressures

On the other hand, HYBE is rapidly implementing its “Hybe 2.0” initiative, which is transforming Japan from the best export destination to a parallel production hub, also de-prioritizing China in the process due to regulatory and political issues. In the place of China, notably the Indian market has caught the BTS label’s eye, thereby setting up a Mumbai office last year to make it a strategic focal point. The country’s digital user base has surpassed 600 million, with a booming music streaming market that reportedly is set to expand by about 14% yearly (data from IMARC). This figure, thereby, offers the scalability that is required by HYBE at this point.

The company has recently initiated a nationwide search for Indian trainees to localize the K-pop model in the country, with further details to be released on March 31, 2026. By establishing a domestic office in India, HYBE reportedly also plans to be involved in the development of concert infrastructure, which could potentially bring artists like BTS to India. Interestingly, a concert leg had been scheduled in Mumbai for their Map of the Soul world tour around 2020-21. It was eventually cancelled due to the COVID-19 pandemic and other logistical issues.

Analysts believe that HYBE’s strong Geffen-backed American infrastructure, backed by the success of Enhypen and the Katseye, provides the strategic push to formalize its new Indian subsidiary. By reallocating capital from high-end markets towards India and Latin America, the company is shifting towards growing markets where digital scalability and return potential offer an outlook of a more resilient evolving path.