Actor Lee Jung-jae has been accused of fraud by Kim Dong-rae, CEO of drama series production company Raemong Raein. The conflict between Lee and Kim began after Lee acquired a major stake in Raemong Raein in March this year, leading to a dispute over the company’s management rights. Lee’s side has reportedly counter-sued Kim for false accusations and fraud.
According to a media report, Kim filed a complaint with the Seoul Gangnam Police Station in June, accusing Lee and Park In-kyu, former CEO of WYSIWYG Studios, of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.
Kim’s legal representative claims that Lee and Park deceitfully acquired Raemong Raein’s major shareholder stake over an extended period. They allege that after acquiring the stake, Lee misled Kim into selling his shares by promising to use Lee’s connections to secure investments from a U.S. entertainment agency.
Kim’s side also accuses Lee and Park of attempting to exclude him from management when he opposed their plan to acquire the media company Chorokbaem Media. They assert that Lee and Park sought Raemong Raein’s management rights for corporate raiding purposes. Kim claimed, “[Lee] immediately began using Raemong Raein’s 20 billion won in cash to acquire Chorokbaem Media, which was under trading suspension.”
Artist United, of which Lee is the major shareholder, has counter-sued Kim for false accusations and fraud under the Act at the Seocho Police Station in Seoul. Artist United states that the contract explicitly mentions a transfer of management rights and denies any agreement for joint management. They also deny promising to acquire management companies or secure investments as a condition for receiving the management rights from Kim.
Raemong Raein, listed on the KOSDAQ market in 2021, has produced popular dramas such as “Sungkyunkwan Scandal” and “Reborn Rich.”
This article was originally published on Aug. 10, 2024.
