[theqoo] [EXCLUSIVE] HYBE, SM, JYP, YP TO FORM A JOINT VENTURE, “TO SURPASS COACHELLA” PARK JINYOUNG KICKS OFF PROJECT “PHENOMENON”

It has been confirmed that Korea’s four major entertainment companies (HYBE, SM Entertainment, JYP Entertainment, and YG Entertainment) are moving to establish a joint venture to create a global festival.

It appears that the “Phenomenon (a phenomenon created by fans)” project, which Park Jinyoung, chairman of the Popular Culture Exchange Committee, is planning as a festival that would surpass the world’s largest music festival, Coachella, is now gaining momentum.

According to Business Post on the 16th, HYBE, SM Entertainment, JYP Entertainment, and YG Entertainment recently submitted a business combination report to the Fair Trade Commission in order to establish a joint venture related to concert planning.

This is interpreted as necessary because HYBE is classified as a large corporate group with assets exceeding 5 trillion won, and SM Entertainment is also an affiliate of the large conglomerate Kakao Group, requiring FTC review during the establishment process of the new joint venture.

An official from the Fair Trade Commission said in a call with Business Post, “We cannot confirm whether individual business combination reports have been filed,” but added, “The review process varies by case, so it is difficult to specify a uniform timeline.”

The joint venture is expected to be established with equal equity contributions from the four entertainment companies. However, specific governance details such as the CEO structure or board composition have not yet been finalized.

The company name is understood to most likely be “Phenomenon.” As the name suggests, the joint venture will serve as the core platform for executing the global K-pop festival project “Phenomenon,” which is being promoted by Chairman Park.

In line with its purpose, the company will operate primarily as a performance planning entity, aiming to host a large-scale music festival in Korea in 2027 featuring artists from the four major agencies.

“Phenomenon” is a combination of the English words “fan” and “phenomenon,” meaning a phenomenon created by fans.

Chairman Park introduced the concept at the launch ceremony of the Popular Culture Exchange Committee held on October 1, 2025, at KINTEX in Goyang, Gyeonggi Province, stating, “We will hold a mega event called ‘Phenomenon’ in Korea and around the world.”

At the time, he also outlined a roadmap: “After about two years of preparation, we will begin holding the festival annually in Korea starting in December 2027, and from May 2028, expand it into a global festival touring major cities around the world.”

The Phenomenon project is also aligned with the Lee Jae-myung administration’s goal of fostering national-level performance intellectual property (IP).

President Lee Jae-myung demonstrated his commitment to nurturing K-culture as a key future industry for Korea’s economy by officially launching the Popular Culture Exchange Committee. The government is promoting a public-private cooperation platform that connects policy and industry, emphasizing a so-called “arm’s length” principle, supporting without interfering to ensure private-sector creativity.

Given this direction, the Phenomenon project is seen as an attempt to develop K-pop performances not just as single events, but as nationally representative cultural IP.

Chairman Park has also previously stated his ambition to build a world-class K-pop performance venue and create a global music festival that surpasses Coachella.

Looking at the global music market, major festivals such as Lollapalooza in the U.S., Glastonbury Festival in the U.K., and Fuji Rock Festival in Japan have become key cultural assets that drive city branding and tourism industries.

Similarly, Phenomenon aims to be a global touring festival based on fandom culture, and is expected to mark a turning point by expanding the existing revenue model of K-pop beyond concerts.