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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Seoul – Artist United, a software developer majority-owned by actor Lee Jung-jae, has won a damages lawsuit against the former head of a drama production company it acquired last year.
On September 5, the Seoul Central District Court’s Civil Division 22 (Chief Judge Choi Uk-jin) ruled partially in favor of Artist United, Lee Jung-jae, former Easyworks Studio CEO Park In-kyu, and another investor in their damages suit against Kim Dong-rae, former CEO of drama production company RaemongRaein (now Artist Studio).
The court ordered Kim to pay KRW 2.78 billion (USD 2.0 million) to Artist United, KRW 749 million each to Lee and Park, and KRW 149 million to another investor, totaling more than KRW 4 billion (USD 2.9 million) in damages.
Founded in 2021 and listed on KOSDAQ, Artist United operates as a software company based on AI and big data platforms. In March 2023, the company became the largest shareholder of RaemongRaein through a KRW 29 billion rights offering, securing an 18.44% stake, surpassing Kim’s 13.41% shareholding.
RaemongRaein, established in 2007, has produced popular dramas such as Sungkyunkwan Scandal (2010) and Reborn Rich (2022). However, disputes soon arose between Artist United and Kim over management direction. In June 2023, Artist United petitioned the court to convene an extraordinary shareholders’ meeting and subsequently filed suit against Kim.
Artist United argued that after the acquisition, plans were discussed for board members Lee Jung-jae and Jung Woo-sung to participate in drama and film production management, but Kim refused investor requests and blocked their involvement. Kim countered that, contrary to initial discussions, the company’s funds were instead being diverted toward acquiring a suspended entertainment company.
Following an extraordinary shareholders’ meeting in October 2023, management control shifted to Artist United and its investors, and the company name was changed to Artist Studio.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
