SMTOWN is the project name used by SM Entertainment for their vacation compilation albums. SMTOWN consists of current artists under SM Entertainment.

SM Entertainment is one of the most successful South Korean entertainment company which was founded by Lee Soo Man. SM (standing for Soo Man) is the mastermind behind a lot of prominent Korean artists (TV, film and music). SM Entertainment recruits and trains their new artists through SM Academy (formerly known as Starlight Academy).

At it's height of success, in 1998 to 2001 SM was said to be the main force behind the genre "k-pop" with bands under his managment such as the successful H.O.T, S.E.S and Shinhwa creating this genre as well as being the driving force and one of the many first artist(s) behind the Korean Wave.

SM Entertainment celebrated its 10 year anniversary with a party on February 15, 2006. Past and current stars known to have attended were Kang Ta, Fly to the Sky, Black Beat, Isak, Dong Bang Shin Ki, TRAX, Lee Yeon Hee, Go Ara, Super Junior, Seo Hyun Jin, So Nyuh Shi Dae, and Choi Seul Ri. Also in attendance were Kim Ji Hye, Oh Yun Soo, and Son Ji Chang.