The agency has long been in discussion about starting a place for locals of the States to experience K-pop first hand and previously had their eyes set on establishing the center in Hollywood, but decided to make its start in Koreatown, LA where many people already have an interest in K-pop. SM Entertainment's U.S. branch, SM Entertainment USA, has purchased a building on Oxford Ave. where the 'SMTOWN Museum' will likely be located.

SME stated, "The start of the 'SMTOWN Museum and Entertainment Space' in LA's Koreatown in the United States is the first step to opening the Hallyu wave's new future. 'SMTOWN Museum' will be a landmark where you can directly experience the various, excellent Hallyu content in the States, and it will further contribute to the spreading of the Hallyu wave. We also plan to showcase SM's new content through holograms and more."

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