What is going on with WM Entertainment? The Korean talent agency is in crisis after founder and longtime CEO Lee Won-Min was fired back in August 2025. WM’s parent company, RBW, intervened over concerns about management, finances, and Lee’s failure to resolve these issues. RBW co-CEO Kim Jin Woo has stepped in as his successor.
However, instead of stabilizing things, Lee’s firing has led to more chaos for WM. Several high-ranking executives left following his dismissal. On September 12 KST, singer and dancer Lee Chae Yeon terminated her exclusive contract with WM after “lengthy discussions.” Industry sources and rumors are ringing the alarm that the agency is in full on crisis mode due to worsening instability.
How Did WM Get Here?
WM is a mid-tier label that managed to make a name for themselves thanks to Lee Chae Yeon and groups like B1A4 and Oh My Girl. Behind the scenes, the company was unraveling.
WM struggled to market and promote its artists effectively. Fan engagement dropped. Acts like B1A4 and Oh My Girl struggled to stand out as other groups exploded in popularity. In 2024, WM was criticized alongside its touring agency J&B Entertainment for leaking ONF’ private schedules and hotel information. Allegedly, Lee Won-Min was fired for failing to adapt to RBW’s profit-driven strategy.
RBW’s Own Problems
Is RBW really in a position to fix WM? Because the parent company is suffering from similar problems with no end in sight.
RBW’s financials are grim. In 2025, revenue dropped to 62.5 billion KRW, down nearly a third from 2024. Operating losses ballooned to -12 billion KRW, with a net loss of -8.6 billion KRW.
Then there’s the management side of things. RBW tried to push an AI chatbot with avatars of its idols, complete with an 18+ “spicy mode.” Keep in mind that some of the idols signed to RBW are minors, like YOUNG POSSE’s Jieun (DSP Media is one of their subsidiaries). Fans ripped them to shreds, accusing the company of exploiting parasocial relationships.
If that wasn’t enough, RBW confirmed that Purple Kiss will disband this November. The girl group suffered from weak promotions, losing fans after moving away from their Halloween-esque concept. For many fans, they see the disbandment as a sign the company is heading for bankruptcy. So how can RBW rescue WM when they can’t even save themselves?
New Strategy or Just Another Sinking Ship?
RBW is aware that there’s problems and they do have a strategy to fix them. Kim Jin Woo has stated he wants to focus more on profitability instead of replicating what bigger labels do. That means no more buying up other labels and consolidating what they already own. Another part of this strategy is tailor artist development to highlight individuality and maximize intellectual property, from licensing old songs to remakes. RBW also wants to explore niche markets like hip-hop, rock, along with launching smaller tours to build sustainable income.
On paper, it sounds like a sound strategy. So far, for what fans can see, it hasn’t led to any meaningful improvements. WM’s instability, artist departures, and ongoing distrust suggest the rot runs too deep. RBW may be attempting to turn things around but the damage is done.
WM Entertainment isn’t just in trouble. It’s facing an existential crisis. It doesn’t help that its parent company is unraveling. With RBW bleeding money, groups disbanding or leaving, it’s hard to believe they can do anything but drag WM down further. It’s looking like things will only get worse for WM. Only time will tell if things will get better before RBW takes their subsidiary down with it.
