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The birth of K-sportainment: SM joins hands with top sports agency

August 26, 2015

It looks like the beginning of Korean “sportainment” — sports agency/marketing powerhouse IB Worldwide and K-pop giant SM Entertainment have joined hands in a strategic partnership through mutual investment.

IB Worldwide saw an increase in capital of 11.5 million won, approximately $9.5 million, from SM Entertainment Tuesday, Yonhap reported, as well as an additional $7.4 million from Hyosung Group.

The company, which currently manages top athletes including Park In-bee, Son Yeon-jae, Choo Shin-soo and Yoo So-yeon, changed its name to Galaxia SM.

SM, in turn, saw a paid-in capital increase of 6.5 million won, or about $5.4 million, from the sports agency.

The agreement marks the first partnership between two top South Korean sports and entertainment companies.

Galaxia SM and SM are reportedly planning to create “sportainment” broadcasting content, merchandising, a health care business and digital marketing through multi-channel networks like YouTube.

“Combining the two companies’ star values with our marketing know-hows makes way for explosive content creation,” said Shim Woo-taek, Galaxia SM head. “Through killer contents, we are planning to expand our scope in events, digital marketing and the health care industry.”