Lee Jung-jae accused of attempting to seize drama production company's management rights
Actor Lee Jung-jae answers questions at a press conference for the new Star Wars series "The Acolyte" at CGV Yongsan I'Park Mall in Seoul, Wednesday. Yonhap
The CEO of the drama production company Raemongraein has rebutted claims from Lee Jung-jae and his company, Artist United, accusing them of attempting to seize management rights through deceptive means.
On Monday, Raemongraein's CEO, Kim Dong-rae, issued a lengthy statement to investors, including Lee, amid an ongoing management dispute.
"Contrary to our initial discussions before the investment, I learned that Artist United used Raemongraein's funds to acquire a suspended entertainment company," Kim said.
Kim added, "This move by (Lee and Artist United), just three months after becoming the largest shareholder, appears to be an attempt to use Raemongraein's cash assets as a shell to acquire another company."
Mentioning Lee, Kim added, "I partnered with Artist United believing that Raemongraein could achieve global expansion through Lee Jung-jae's network and capital. However, Lee has never visited the company or presented any vision for its management."
While Raemongraein's current management opposes the acquisition of the suspended listed company, Artist United has notified the management to hold a general shareholders' meeting to discuss replacing the CEO, changing the company name, replacing the entire board and amending the articles of association.
In response, Kim said, "We cannot let Raemongraein become a victim of forces attempting to seize management rights through deceptive methods."
Kim continued, "I call on Lee Jung-jae and the other investors to stop these unjust attempts and engage in sincere and reasonable discussions for the growth and development of Raemongraein."
Actor Lee Jung-jae speaks at a press conference for the new Star Wars series "The Acolyte" at CGV Yongsan I'Park Mall in Seoul, Wednesday. Yonhap
Management dispute escalates
Meanwhile, the legal dispute between Raemongraein and Artist United became known on June 5. Artist United acquired Raemongraein in March this year but recently filed a lawsuit for damages against Kim.
Artist United's legal representative said, "While the involvement of Lee Jung-jae and (actor) Jung Woo-sung in Raemongraein's management was discussed, Kim has refused to comply with the investors' requests. He has ignored the rightful request for an extraordinary general meeting, blocking investor participation in management."
The Raemongraein CEO said that just three months after becoming the largest shareholder, the investors' actions appear to be aimed at using Raemongraein's cash assets as a shell for acquiring another company.
Raemongraein listed its shares on the junior bourse Kosdaq in 2021 and has produced dramas such as "Sungkyunkwan Scandal" (2010) and "Reborn Rich" (2022).
As of the end of March, the largest shareholder of Raemongraein is Artist United, holding 18.44 percent. Lee Jung-jae also personals holds 5.12 percent, bringing their combined share to 23.56 percent. CEO Kim holds 13.41 percent, and Raemongraein director Yoon Hee-kyung holds 0.51 percent.
This article from the Hankook Ilbo, sister publication of The Korea times, is translated by generative AI and edited by staff of The Korea Times.