Artist Company, with actor Lee Jung Jae as its largest shareholder, has won the first trial in its damages lawsuit against Kim Dong Rae, former CEO of its production arm Artist Studio (previously Raemongraein).
On September 5, 2025, the Seoul Central District Court found that Kim had breached an investment agreement by refusing to transfer management rights to Artist Studio. The court ordered him to pay about 5 billion won ($3.6m) in penalties and damages.
In early 2024, Artist Company and other investors agreed to invest approximately 29 billion won in Raemongraein, subject to the condition that management control would be transferred. After the investment was completed, Kim refused to transfer the rights, resulting in a series of legal actions. The damages suit was filed to hold him accountable for violating the contract.
Regarding the court ruling, the Artist Company said,
With this ruling, the stability of the company and the protection of shareholders’ rights have been legally confirmed. We will continue to do our best to prevent unnecessary confusion caused by baseless controversies in the future.
Law firm Lin, representing Artist Company, stressed that the court clearly upheld liability for both penalties and damages tied to the refusal of a management transfer. They added
In particular, by clarifying the effectiveness of the penalty clause, it will serve as an important milestone in increasing the transparency and stability of investment contracts and management rights transfer transactions in the future.
Raemongraein, founded in 2007, has produced well-known dramas including Sungkyunkwan Scandal and Reborn Rich. The conflict reached a conclusion in December 2024, when shareholders voted to dismiss Kim and Vice President Yoon. Afterward, Artist United rebranded Raemongraein as Artist Studio.
On another note, Lee Jung Jae’s company has partnered with Imaginarium Productions for a spy film, Secret Idol, which mixes K-pop and espionage. After gaining global popularity with Squid Game, Lee now returns to the rom-com genre opposite Lim Ji Yeon in Nice to Not Meet You.