May 27, 2025 - Business

Tencent invests in K-pop firm, as China restrictions may ease

Dan Primack

Illustration of an upward trending chart with a musical note behind the arrow, in the style of a concert poster. — Illustration: Brendan Lynch/Axios

Tencent of China is acquiring a 9.7% stake in listed South Korean music firm SM Entertainment Co. from K-pop agency Hybe for around $177 million, according to a securities disclosure.

Why it matters: This is the latest indication that mainland China plans to lift its unofficial ban on K-pop and other forms of Korean entertainment

Tencent operates several large online music platforms in China, which had been a major K-pop consumer before the ban.

Go deeper, via Deadline: "China started to restrict the distribution of Korean ... pop culture in 2016 in retaliation to South Korea's deployment of U.S. THAAD missile defense systems. Although Beijing has never officially acknowledged the ban, very few Korean movies or dramas have been released in Chinese cinemas or on streaming platforms and K-pop artists have not been allowed to perform in the country."

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Tencent invests in K-pop firm, as China restrictions may ease

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