Lee Jung Jae and Jung Woo Sung have won a major legal victory against the former CEO of their production company. On September 5, 2025, the Seoul Central District Court ruled that Kim Dong Rae, the former head of Artist Studio (formerly Raemongraein), violated an investment agreement and must pay approximately 5 billion KRW (about $3.8 million) in penalties and damages.
The court found that Kim refused to transfer management rights after receiving a significant investment from the actors’ company. This decision ends a prolonged legal battle that began in early 2024.
Background of the Investment Dispute
The conflict started when Artist COMPANY, co-founded by Lee Jung Jae and Jung Woo Sung, invested 29 billion won (about $22 million) in Raemongraein in early 2024. This investment was made with the condition that management rights would be transferred to Artist COMPANY. After the money was paid, Kim reportedly refused to honor the agreement and transfer control.
Raemongraein is a well-known drama production company established in 2007. It has produced popular Korean dramas like “Sungkyunkwan Scandal” and “Reborn Rich.” The company was later renamed Artist Studio after Artist United, where Lee Jung Jae is the largest shareholder, acquired it.
The Legal Battle and Court Ruling
The lawsuit was filed to hold Kim responsible for breaking the investment contract. Artist COMPANY had to engage in several legal actions to secure the management rights of Artist Studio. The damages suit was part of this effort.
According to the court ruling, Kim must pay 2.779 billion won to Artist United, 749 million won each to Lee Jung Jae and another investor named Park, and 149 million won to another investor identified as Eom.
Artist COMPANY stated: “This ruling legally confirms the company’s stability and protection of shareholder rights. We will continue to prevent unnecessary confusion caused by unfounded controversies.”
The law firm LIN, which represented Artist COMPANY, emphasized the importance of the court’s decision. They noted that it sets a clear example for handling cases where management rights are unfairly refused after an investment.
Attorney Do Hyun Su from LIN Law Firm said: “It is significant that the plaintiffs’ rightful claims were legally acknowledged. We remain committed to protecting investors’ rights in disputes involving investment agreements and corporate governance.”
What This Means for Future Investments
The court’s decision is seen as an important milestone for investment contracts in the entertainment industry. By affirming the enforceability of penalty clauses, the ruling strengthens transparency and stability in business agreements. This case may influence how future investment deals and management transitions are handled in South Korea.
Legal experts believe this judgment could protect investor rights more effectively, especially in disputes related to corporate governance and management control.
Recent Activities of Lee Jung Jae and Jung Woo Sung
Despite the legal challenges, both actors have remained active in their careers. Lee Jung Jae is currently filming tvN’s new drama “Nice to Not Meet You”, where he stars alongside Lim Ji Yeon. He is also working on a spy film called “Secret Idol” that combines K-pop and espionage themes.
Jung Woo Sung is preparing for the Disney+ original series “Made in Korea.” Both actors continue to manage Artist COMPANY, which actively produces entertainment content.
Company History and Background
Artist COMPANY was founded in 2016 by Lee Jung Jae and Jung Woo Sung. In November 2024, it merged with Artist United, a listed company where Lee Jung Jae is the largest shareholder. Artist United is an artificial intelligence big data platform company that was established in 2010 and listed on KOSDAQ in 2021.
The production company at the center of the dispute, Raemongraein (now Artist Studio), was acquired by Artist United. After shareholders voted to dismiss Kim and Vice President Yoon in December 2024, the company was rebranded as Artist Studio.
Also Read: Lee Jung Jae and Lim Ji Yeon Star in New Romantic Comedy Drama Nice to Not Meet You on Prime Video
Credits: news.nate.com
