SM Entertainment is the Korea's leading entertainment and media company. In April 2000, SM Entertainment became the first national entertainment company registered in KOSDAQ. This company, which gained a wealth of resources through KOSDAQ, engages in academy institute business, music planning & production(producing business), distribution(licensing, record release, etc.), publishing, singer & actor management business, specialized agencies, theater business. Furthermore, this company is trying to diversify business and acquire a variety of content through acquisition. In addition, dealing with primary sources of entertainment, SM Entertainment made the foundation of overseas expansion through the systematic and efficient global talent development system. In this study, we analyze the star system and the domestic nature of entertainment industry, and examine the relationships between them. This case presents significant implications for domestic entertainment industry about both the establishment of innovative business models and global human resource development, it provides practical insights. Therefore, we can understand that entertainment industry is different from traditional manufacturing industries.