Drama Production Company Claims Unfair Tactics by Largest Stakeholder

Courtesy of Lee Jung-jae's instagram

Kim Dong-rae, the head of RaemongRaein, a prominent South Korean drama production company, has accused Actor Lee Jung-jae and his company, Artist United, of attempting to unjustly seize control of RaemongRaein. In a press release on Monday, Kim claimed that Artist United, the largest stakeholder in RaemongRaein, has been pressuring the company to convene an extraordinary general meeting to replace its head and overhaul the board of directors.

According to Kim, RaemongRaein objected to Artist United's plan to acquire another company, which led to the alleged pressure. Artist United and its affiliates currently hold a 29.33 percent stake in RaemongRaein, while Lee holds 23.49 percent in Artist United.

"We partnered with Artist United, led by Lee Jung-jae, believing in their potential to aid our global expansion," Kim said. He added that Artist United's plans diverged from their initial agreement, revealing an intent to use RaemongRaein's funds to acquire a listed company whose trading has been suspended.
 

▲ Courtesy of Lee Jung-jae's instagramKim stated that RaemongRaein’s current management team expressed their refusal to accept the acquisition proposal, arguing it did not align with the company's core business objectives. Following this, Artist United reportedly issued a unilateral notice demanding an extraordinary general meeting to alter the company's leadership, board, and articles of incorporation.

Kim suggested that the investors' actions indicated a motive to utilize RaemongRaein’s assets for unrelated acquisitions, rather than the stated purpose of producing content and expanding globally. "We cannot allow RaemongRaein, built over 18 years, to be controlled through deceptive means," he said.

In response, Artist United filed an application with the court on Wednesday to hold an extraordinary general meeting for appointing new directors. The company also initiated legal action against Kim, seeking damages for alleged obstruction of their management involvement and non-compliance with investor requests for the meeting.

The law firm representing Artist United, Lin, claimed that Kim has been disregarding investors’ demands, including those to involve Lee Jung-jae and actor Jung Woo-sung in RaemongRaein’s management.

Shares of RaemongRaein increased by 15.1 percent on Monday, closing at 16,830 won ($12). The rise in stock price reflects investor activity during the management dispute, as competing parties often purchase shares to influence the outcome through their shareholding proportion.

Sayart 

Blue YIM, yimyoungseo1010@naver.com