Artist United, the agency co-owned by prominent actors Jung Woo Sung and Lee Jung Jae, is under scrutiny following allegations of insider trading. The company has issued a firm statement denying the claims and clarified that Lee Jung Jae, best known for his role in Squid Game, is not being investigated but is cooperating as a witness.
Insider Trading Allegations Surface
Reports indicate that Artist United, previously known as Widerplanet, has seen its stock price plummet by 20%, raising red flags among investors. Authorities suspect that certain individuals exploited insider knowledge about the acquisition of Widerplanet by Lee Jung Jae and Jung Woo Sung in 2023. Allegedly, these individuals manipulated the stock price before the acquisition to reap personal profits.
Artist United Clarifies
In response to the allegations, Artist United clarified that the investigation is related to activities predating its acquisition. The agency stated:
“Lee Jung Jae is not under investigation. He is cooperating fully as a witness. Neither the agency nor the actor is involved in any illegal activities, including insider trading.”
The company emphasized that the alleged wrongdoing occurred before the acquisition and during Widerplanet’s operation as an independent entity.
Background on the Acquisition
- Widerplanet’s acquisition: December 2023 by Lee Jung Jae and Jung Woo Sung through a third-party capital increase.
- Name change: Renamed Artist United in March 2024.
- Merger: Artist United merged with Artist Company, their entertainment management agency, in November 2024.
The allegations stem from unusual trading activity in Widerplanet’s shares during the time of the acquisition. This activity reportedly involved artificially boosting the stock price, which later dropped dramatically, leading to significant financial losses for some shareholders.
Company’s Commitment to Transparency
Artist United assured the public and its shareholders of their full cooperation with the investigation. They also pledged to hold any wrongdoers accountable and are taking steps to minimize financial losses for investors.
With the matter still under investigation, the company aims to protect its reputation and clarify any misunderstandings related to the timeline and nature of the alleged incidents.
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Credits: Economist Korea
