Why Is SM Entertainment Losing So Many Stars? Experts Blame One Key Factor

Once considered the shiniest gold standard in K-Pop management, SM Entertainment has been facing growing challenges in holding on to its veteran artists.

| SM Entertainment 

For the past few decades, SM has easily dominated the K-Pop market and debuted some of the industry’s most popular groups, so the company doesn’t lack in big names. However, over the past few years, a noticeable pattern has emerged: more and more long-time stars are either leaving the company entirely or openly expressing frustration with its operations.

| SM Entertainment

While SM has managed to retain major names like Girls’ Generation’s Taeyeon, Red Velvet’s Irene and Seulgi, EXO’s Kai, SHINee’s Key and Minho, and TVXQ!, it has also seen a wave of departures and rising tensions.

| @taeyeon_ss/Instagram

Most recently, Red Velvet’s Wendy and Yeri left the agency after more than ten years.

Red Velvet’s Wendy And Yeri Officially Leave SM Entertainment

A few weeks ago, the agency managing EXO’s Xiumin solo activities accused SM of pressuring KBS to exclude him from appearing on Music Bank and interfering with his solo promotions.

EXO’s Xiumin Allegedly Banned From Performing On “Music Bank” Due To SM Entertainment

Paired with multiple frustrations expressed publicly by stars like Taeyeon, there seems to be a negative trend in how SM is perceived by its long-time stars. Industry experts point to one major change in the company’s structure as a possible root cause: the absence of strong leadership following founder Lee Soo Man’s departure from active management.

In the past, SM Entertainment was led by Lee Soo Man, whose strong intuition for successful productions earned the trust of both artists and fans. They followed him because they believed in his vision, and the results proved them right.

Now, the company operates under a ‘center system’ — more like a factory without a branded leader. Some centers perform well, while others don’t. These are managed by employees, and from the artists’ perspective, there’s no longer the same trust in the decision-making process.

— Stephanie Choi, postdoctoral researcher

| SM Entertainment

Music critic Kim Yoonha agrees that this shift has contributed to a disconnect. She noted that while it’s common for long-serving artists to explore other options, SM’s lack of centralized guidance may be accelerating that process

There are many idols within SM who’ve been under contract for over 10 years. That naturally leads to a stronger desire for autonomy. Artists like Xiumin or Wendy, who are departing or seeking different paths, have each worked under the company for more than a decade. If these cases involved younger idols only a few years into their careers, it might be seen as unusual — but long-serving artists have good reason to want change.

Still, Lee Soo-man’s absence is significant. He was the one who discovered and nurtured these artists. And there’s growing frustration around the center system. There appears to be a gap in artist care — a sense of neglect. Both Taeyeon and Wendy alluded to this on Bubble.

— Kim Yoonha

| SM Entertainment

As SM Entertainment looks toward the future, experts suggest regaining artist trust, perhaps through clearer leadership or more personalized support.  may be key to keeping its stars from walking away.