The company consequently closed down after losses, and by June 13, 2008, SM had transferred its remaining stake to Premier Entertainment (later PRE-GM and Candle Media).

Arcom Studio commenced on February 5, 1999, under the name Bitwin, with the company carrying out its name in the industry by producing DVDs for Korean movies for the first time in Korea.

[4][5] The DVD production and distribution company appointed Han Se-min, then general director of SM Entertainment's IR and global business and co-representative of Bitwin, as its sole chief executive officer (CEO).

[7] The company has also intended to produce movies and dramas through self-production and co-production, making "high-quality" video content by securing "top-notch" professionals and developing its business areas throughout the local and international film industry exports and imports.

[12] In November 2007, SM Pictures announced that it would carry out a paid-in capital increase of KRW 16.9 billion to acquire childhood education company Kinder Schule.