Reported by Koreaboo on Wednesday June 12, 2024, South Korean actor Lee Jung Jae was involved in a legal dispute with the CEO of Raemongraein, a drama production company he acquired this year.
KST CEO Kim Dong Rae issued a statement to investors, stating that Lee Jung Jae's company, known as Artist United, had filed a lawsuit against him for losses and was trying to obtain management rights through a special meeting on Tuesday June 10, 2024.
Kim Dong Rae also criticized Lee Jung Jae, for never visiting the company or having a specific vision for Raemongraein's future management. Artist United is a company in which Lee Jung Jae is the largest shareholder and acquired Raemongraein in March this year.
According to CEO Kim, just three months after becoming the largest shareholder, Artist United used the company's cash assets as a shell to acquire the suspended entertainment company. "Contrary to our initial discussions prior to the investment, I learned that Artist United used Raemongraein funds to acquire a suspended entertainment company.
The move made by (Lee and Artist United), just three months after becoming the largest shareholder, appears to be an attempt to use cash assets Raemongraein as a shell to acquire other companies." Said Kim Dong Rae.
Kim also mentioned Lee Jung Jae in his statement, revealing that although he expected Raemongraein to achieve global expansion through Lee Jung Jae's involvement, he showed no interest in the company's growth as an investor.
While Raemongraein management is currently opposing the pending acquisition of the listed company, Artist United has informed management to hold a general shareholder meeting to discuss the replacement of the CEO, change of company name, replacement of the entire board, and changes to the articles of association.
Kim responded to this move by saying, “We cannot allow Raemongraein to fall victim to forces trying to seize management rights through deceptive methods.” At the same time, legal representatives of the company Artist United argued that CEO Kim had prevented investors from exercising their participation rights in management.
"While the involvement of Lee Jung Jae and (actor) Jung Woo Sung in the management of Raemongraein was discussed, Kim refused to comply with investors' requests. He ignored the legitimate request to hold an extraordinary general meeting, thereby blocking investors' participation in management." Said the Artist United representative
In response to the lawsuit, Kim asked Lee Jung Jae and other investors to stop their 'unfair attempts' to usurp management power and instead engage in sincere and reasonable discussions about the company's future. For additional information, Raemongraein is a company that produces dramas such as Sungkyunkwan Scandal (2010) and Reborn Rich (2022).
The company then had Artist United as its largest shareholder with ownership of 18.44%. Actor Lee Jung Jae himself is known to personally hold 5.12% of the shares. Their combined shares amount to 23.56% and CEO Kim holds 13.42% of the shares, while the company's director, Yoon Hee Kyung, holds 0.51%.
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