SM 3.0

Announced in February 2023, it would focus on integrating various aspects of the company's operations, including music production, content creation, and global distribution, into a cohesive system.

The plan would aim to expand the company's market presence and enhance its offerings to provide a more comprehensive experience for fans.

These systems were designed to support the company's efforts to optimize its operations and increase its competitiveness in the entertainment industry, particularly in terms of producing content and expanding its market reach.

[9] SM 3.0 would be promoted based on the intellectual property (IP), business, overseas, and investment system, which would be the future growth engine of the company.

[13] Lee Sung-soo stated that SM's existing system had limitations in IP production and operation required by the market and fans and pointed out the meaning of introducing a multi-production center and multi-label.

Lee added that by "dispersing and systematizing" multiple production centers and labels, the company could secure its business sustainability in a "competitive" way.

[14] The system would produce several entities by way of their respective IPs, and through this, [it would purposely]:[15] Accordingly, SM divided SM artists into "five plus one" (5+1) production centers, where five of the centers would guarantee "independent" decision-making by arranging artist-only production and "essential" functions and show off "improved" IP creation by respecting "creative" autonomy.

[29] This includes the creation of a new NCT sub-unit consisting 2 new trainees of Japanese and Korean nationalities, marking an end to the group's limitless concept.

[30] On July 31, 2023, the company that a boy group named 'RIIZE,' consisting of former NCT members Sungchan and Shotaro were set to debut for early September.

[36] In the entire email, he appealed that the executives, staff, and artists were "shocked" by the announcement of the two co-CEOs and that the statement was not the result of communicating with Lee but an "arbitrary" decision.