A statement released by Avex says SM is planning to set up a Japanese subsidiary, tentatively called SM Japan, in which Avex will have a 15% share. SM Japan will confine its activities to music publishing and artist management, as well as serving--according to Avex chairman Tom Yoda--as a bridge between Avex and SM's head office in Seoul, South Korea. No one from SM Entertainment was available for comment on the deal at press time.