On February 3, SM Entertainment announced the first part of its business plan for 2023, 'SM 3.0: IP Strategy - Multi 'Production Center/Label' System'.

On this day, SM Entertainment co-CEOs Lee Sung Soo and Tak Young Joon explained the agency's ambitious plan to launch phase 3.0 of SM Entertainment. First, Lee Sung Soo described phase 1.0 as the era from 1996 through the late 2000's, when singer/producer Lee Soo Man first founded SM Entertainment, then went on to launch successful artists like H.O.T, BoA, TVXQ, Super Junior, Girls' Generation, and SHINee. Phase 2.0 was described as the era from the 2010's through 2022, when producer Lee led the creation of artists like EXO, Red Velvet, NCT, and aespa. 

CEO Lee Sung Soo then announced that from 2023 onward, SM Entertainment will be entering its phase 3.0. Broadly, this phase looks to expand SM Entertainment's IP creation and production to the global market, alongside the advancement of the company's music publishing business, multi-label system, fandom economy business, metaverse business, etc. 

Phase 3.0 will also introduce a trilateral format featuring a multi-label body, a multi-production body, and a subsidiary company focussing on music-publishing. 

Entering this phase 3.0 in 2023, SM Entertainment's projected IP production timeline will be as follows: 

• Three new teams debuting in 2023 (+ Virtual solo artist Naevis)
• A total of 41 album releases in 2023 (31 albums released in 2022)
• 18 million album sales in 2023 (14 million sales reached in 2022
  

The three new teams expected to debut in 2023 will each be produced under the direction of CEO Lee Sung Soo, CEO Tak Young Joon, and chief board member Park Joon Young.

Finally, co-CEOs Lee Sung Soo and Tak Young Joon confirmed that head producer Lee Soo Man's production contract with SM Entertainment has come to an end as of September of 2022. Lee Soo Man will continue to support SM Entertainment as its largest shareholder, but will no longer take part in the production and artistic direction of the company's musicians.