Artist Company, actor Lee Jung-jae, Park In-kyu, and others have won a damages lawsuit against the former CEO of Kim's Artist Studio (formerly Raemong Raein) in the first trial.
On the 6th, the legal representative of Artist Company, Law Firm Lin, stated, "The Seoul Central District Court ruled on the 5th that the former CEO Kim's refusal to transfer the management rights of Artist Studio was a clear violation of investment, and ordered Kim to pay approximately 5 billion won in penalties and damages to the Artist side."
According to Lin, Artist Company and others had signed an investment contract with CEO Kim and Raemong Raein in early 2024, investing about 29 billion won on the condition of transferring management rights.
However, after the investment was completed, CEO Kim refused to transfer the management rights in violation of the contract, leading to conflicts between the two parties.
Artist Company had to go through multiple legal battles to secure management rights of Artist Studio, and the damages lawsuit was filed to hold CEO Kim accountable for the breach of contract.
With this ruling, Artist Company stated that the stability of the company and the protection of shareholder rights have been legally confirmed, and said, "We will do our best to prevent unnecessary confusion from unfounded controversies in the future."
Law Firm Lin, which represented this case, stated, "This ruling is a clear acknowledgment by the court of the penalties and damages for the unilateral refusal of the agreed management rights transfer," adding, "By clarifying the effectiveness of the penalty clause, it will serve as an important milestone in enhancing the transparency and stability of future investment contracts and management rights transfer transactions."
Artist Company was established in 2016 by Lee Jung-jae and fellow actor Jung Woo-sung. On November 5, 2024, Lee Jung-jae's publicly listed company Artist United, of which he is the largest shareholder, merged with management company Artist Company.
Artist United is an artificial intelligence (AI) big data platform company established in 2010 and was listed on the KOSDAQ in 2021.
Artist United acquired Artist Studio (formerly Raemong Raein), the production company behind popular dramas such as 'Sungkyunkwan Scandal', 'The Youngest Son of a Conglomerate', and 'Death to Snow White'.
[Kim Mi-ji, Star Today Reporter]
