According to an exclusive report by New Daily on August 10th, Kim Dong-rae, CEO of RaemongRaein, the production company behind JTBC’s drama “Reborn Rich”, filed a complaint in June against Lee Jung-jae and former WYSIWYG Studios CEO Park In-gyu for violating the Act on the Aggravated Punishment of Specific Economic Crimes (Fraud) at the Seoul Gangnam Police Station.
Kim’s side claims that Lee Jung-jae and Park In-gyu deceived him by promising corporate growth and joint management.
Kim’s legal representative stated, “Lee Jung-jae and Park In-gyu had no intention or ability to grow RaemongRaein into a global drama production company or manage the company together with the plaintiff. Despite this, they repeatedly lied over a long period to acquire the largest shareholder’s stake.“
They further alleged, “Lee Jung-jae and Park In-gyu misled us into transferring shares by claiming that their acquisition of RaemongRaein’s shares would help significantly grow the company by acquiring famous management companies under domestic entertainment agency A and securing investment from well-known U.S. entertainment agency B using Lee Jung-jae’s connections and influence.”
Kim’s side also emphasized that Lee Jung-jae and Park In-gyu had promised joint management, with a clause in the contract stating that they would “faithfully discuss and operate the company together in the future”. However, when Kim opposed the acquisition plan for Chorokbaem Media, they attempted to completely exclude him from management.
Currently, Kim’s side asserts that Lee Jung-jae and Park In-gyu approached him with the intention of “corporate raiding” and taking control of RaemongRaein’s management rights.
Regarding this, Kim’s side stated, “Lee Jung-jae and Park In-gyu acquired RaemongRaein’s management rights with the intention of ‘corporate raiding’. They immediately began the process of acquiring another listed company (Chorokbaem Media) that was suspended from trading, using RaemongRaein’s 20 billion won in cash.” They claimed that Lee Jung-jae disregarded his original promise to focus on company growth and instead focused solely on acquiring Chorokbaem Media.
However, Lee Jung-jae’s side refuted these claims, stating that they are completely unfounded.
Lee Jung-jae’s side argued, “There was no promise to acquire a management company under Company A or secure investment from Company B as a condition for transferring management rights from Kim.”
Regarding joint management, they clarified, “The original common stock investment contract explicitly stated that it was a ‘contract to transfer management rights’. Kim’s claims would only be valid if he had been forced to sign the contract, but the contract was made with mutual agreement.”
Lee Jung-jae’s side also expressed frustration, saying they had never met Kim before the contract and had only had two meetings after the contract. They have countersued Kim for false accusations and fraud.
The police, who received Kim’s complaint, have already completed an investigation with him and plan to conduct investigations with Lee Jung-jae and Park In-gyu soon.
In March, “Artist United”, of which Lee Jung-jae is the largest shareholder, acquired RaemongRaein through a capital increase. RaemongRaein allocated 5.24% of its shares to both Lee Jung-jae and Park In-gyu, 18.85% to Artist United and 1.05% to K-Culture No.1 Association for a total of 30.37%.
However, the dispute over management rights began when Lee Jung-jae’s side filed a lawsuit for damages and requested the convening of a shareholders’ meeting, accusing Kim of refusing to allow Lee Jung-jae and actor Jung Woo-sung (a director at Artist United) to participate in RaemongRaein’s management.
Source: Wikitree
