HYBE, SM, JYP, YG form joint venture for global K-Pop festival 'Phenomenon' led by J.Y. Park

South Korea’s four largest entertainment companies, HYBE, SM Entertainment, JYP Entertainment, and YG Entertainment, are moving forward with plans to establish a joint venture aimed at creating a global music festival. The move signals a major shift in the global strategy of the K-pop industry.

According to an April 16 report compiled by Business Post, the four companies recently submitted a business combination filing to the Korea Fair Trade Commission as part of the process to establish a new corporation dedicated to concert planning and festival production.

The filing is required because HYBE is classified as part of a large conglomerate with assets exceeding 5 trillion KRW (about 3.4 billion USD), while SM Entertainment is affiliated with the Kakao Group, which is also designated as a major corporate group. Although the regulator did not confirm specific filings, it stated that review timelines vary depending on the details of each case.

Equal Partnership and Global Ambition

The planned joint venture will be funded equally by the four companies. Key governance details such as CEO appointment and board structure have not yet been finalized. The new entity is expected to play a central role in executing the 'Phenomenon' project.

The name 'Phenomenon,' which combines the words “fan” and “phenomenon,” reflects the concept of a large-scale cultural movement driven by global fandom. The project is being led by Park Jin Young, known as J.Y. Park, who serves as chairman of the Popular Culture Exchange Committee. He first introduced the concept at the committee’s launch ceremony on October 1, 2025, at KINTEX in Goyang.

At the time, J.Y. Park outlined an ambitious roadmap. After roughly two years of preparation, the festival is expected to debut in South Korea in December 2027 as an annual mega-event featuring artists from all four agencies. From May 2028, it is planned to expand into a global touring festival across major cities worldwide.

Aiming Beyond Coachella

J.Y. Park has positioned 'Phenomenon' as a festival designed to surpass globally recognized events such as 'Coachella Valley Music and Arts Festival.' His vision includes building a world-class K-pop performance platform and establishing a flagship cultural intellectual property for South Korea.

The initiative aligns with cultural policy direction under the administration led by Lee Jae Myung, which has emphasized developing K-culture as a key future growth engine. The government supports a public-private partnership model that encourages creativity while maintaining limited direct intervention, often described as an arm’s length principle.

Expanding the K-Pop Business Model

Globally, major festivals such as 'Lollapalooza' in the United States, 'Glastonbury Festival' in the United Kingdom, and 'Fuji Rock Festival' have become key cultural assets that drive tourism and strengthen city branding.

'Phenomenon' is expected to follow a similar trajectory, but with a stronger focus on fandom-driven participation. By expanding beyond traditional concert-based revenue structures, the project could mark a turning point for the K-pop industry, transforming it into a global festival ecosystem centered on fans.