Lee Jung-jae's Artist Company Wins Management Dispute Over Subsidiary Artist Studio
Sep 24, 2025
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The artist company said on the 24th that `As this ruling resolves the uncertainty of management rights, the company will raise corporate value and expand its content business in earnest in the future.'
The beginning of the dispute was a breach of contract by Kim Dong-rae, former CEO of Raemongrae. Artist company and actor Lee Jung-jae invested about 29 billion won early last year and signed a contract on the condition of transfer of management rights, but former CEO Kim unilaterally refused to do so, causing conflicts. The company explained that investors, including Lee Jung-jae, suffered serious damage in the process.
Since then, former CEO Kim and some minority shareholders have continued their lawsuits, claiming the invalidation of the artist studio's paid-in capital increase. However, the court ruled in favor of the artist company in both lawsuits for suspension and invalidation of the issuance of new shares. Furthermore, the lawsuit for damages ordered former CEO Kim to be liable for a total of 5 billion won, including about 4.4 billion won in principal and delayed damages.
With this ruling, the artist company plans to focus on strengthening new IP development and content production capabilities. In the second half of the year, starting with tvN's drama 「'Yal Love', SBS'Good Partner' Season 2 and 'Soju's Essence' will be introduced next year.
A company official said, `This ruling clearly confirms that the former management, including former CEO Kim,'s unilateral refusal to transfer management rights and violation of the contract were unfair.' `The suspicion of abusing the reputation of investors is also significant in that the court judged that there was no basis.'
mj.cho@sportschosun.com
