South Korean comprehensive content company Artist Company (321820) announced on September 24 that it has won a nearly two-year-long legal battle over the management rights of Artist Studio (formerly RaemongRaein). The court victory resolves the company’s governance risk and is expected to accelerate its efforts to enhance corporate value and expand its content business.
According to Artist Company, the dispute originated from contract violations by former RaemongRaein CEO Kim Dong-rae. In early last year, Artist Company and actor Lee Jung-jae invested approximately KRW 29 billion in Artist Studio under an agreement that included the transfer of management rights. However, Kim unilaterally refused to honor the terms, triggering a conflict that caused significant losses for all investors, including Lee Jung-jae.
Subsequently, a paid-in capital increase conducted by Artist Studio to attract investment also led to lawsuits, as Kim and some minority shareholders claimed it was invalid. The Seoul Central District Court ultimately ruled entirely in favor of Artist Company. In particular, in the damages lawsuit, the court ordered Kim to pay approximately KRW 4.4 billion in principal plus late payment interest, totaling over KRW 5 billion, and upheld the validity of the new share issuance.
With this legal victory, Artist Company aims to eliminate management uncertainties and focus on business expansion. The company is concentrating on developing new IP and strengthening its content production capabilities. Scheduled releases include tvN’s Unpleasant Love in the second half of this year, followed by SBS’s Good Partner Season 2 and The Essence of Soju next year. Additionally, the company is accelerating joint production projects and overseas collaborations with global studios.
Written by Mun Wan Sik
Translated by Lee So Yun
