The company was formed to differentiate metaverse content based on the culture technology SM has accumulated.

On July 12, 2022, SM Entertainment announced that it had established Studio Kwangya, a company specializing in metaverse content production technology.

[4] Lee Sung-soo and Tak Young-jun stated that the company's establishment specialized in "differentiated" metaverse content based on the culture technology (CT) SM has "accumulated" to date.

[8] As SM is carrying out a business that incorporates virtual reality into artist activities, the establishment of the joint venture is planned to showcase different collaborations with artists throughout K-pop in the VR metaverse environment.

[10] Studio Clon was acquired to "reinforce [the company's] metaverse and content capabilities," implement SM 3.0 business strategies, and "enhance its virtual IP rights" by combining Studio Clon's technology with the virtual human and visual special effects technologies possessed by the company.