Three weeks after Jung Woo-sung's resignation ... Artist Company, where Lee Jung-jae is the largest shareholder, files complaint against five people, including a former executive

[Financial News] Actor Lee Jung-jae is the largest shareholder of entertainment agency Artist Company, which filed a police complaint against five people, including a former executive, over alleged occupational breach of trust involving several hundred million won.
According to Sports Kyunghyang, Newsis and other outlets on the 23rd, Artist Company filed a complaint the previous day (the 22nd) with Seoul Gangnam Police Station against five people, including Lee, a former unregistered executive, for allegedly violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (occupational breach of trust).
The amount related to the allegations disclosed by the company was 681,762,939 won, equivalent to 1.49% of its equity as of the end of last year, which stood at 45,780,110,000 won. The figure was calculated based on the findings of an external law firm commissioned by the company to conduct an investigation. It may change depending on investigations by authorities and court rulings, among other factors, and is not a finalized amount of damages.
The complaint is a follow-up to allegations of occupational breach of trust that surfaced on the 17th of last month. At the time, the company said it had confirmed allegations of occupational breach of trust against Lee, an unregistered executive, but did not disclose a specific amount. After an external legal review, it filed a criminal complaint against five people, including Lee and four others. The identities of the other four and details of the transactions have not been disclosed.
Artist Company said that if the amount of embezzlement or breach of trust confirmed in the future is at least 3% of its equity or at least 1 billion won, it could constitute grounds for a substantive review of listing eligibility under the KOSDAQ Market Listing Regulations.
Artist Company was co-founded by Lee Jung-jae and Jung Woo-sung in 2016. Lee is currently its largest shareholder, holding a 27.10% stake, while Jung holds a 10.99% stake.

Jung Woo-sung resigned early from his position as an inside director on the 2nd, about six months before his term was due to expire, and remains an actor represented by the company. No connection between Jung's resignation and the current breach-of-trust allegations has been confirmed.


[email protected] Kim Su-yeon Reporter