Written On: December 6, 2024
Last Updated: December 6, 2024
Actor Lee Jung-jae and his company, Artists United (formerly Wider Planet), are at the center of a financial investigation. Allegations of insider trading and stock manipulation have raised questions about the recent acquisition of the company and its subsequent activities.
Investigation Details
On November 3, the Financial Services Commission’s Capital Market Investigation Department conducted a search and seizure operation targeting businesses connected to Artists United. Authorities suspect that certain individuals exploited insider knowledge of Lee Jung-jae’s acquisition to artificially inflate stock prices for profit.
The controversy began when Lee Jung-Jae became the largest shareholder of Wider Planet on December 8 last year. He reportedly invested 10 billion won in the company alongside actor Jung Woo-sung and former Wizwiz Studio CEO Park In-gyu. This group acquired the company as part of a larger business strategy.
Stock Price Surge Sparks Concerns
Before the acquisition was officially announced, Wider Planet’s trading volume soared. The stock price, which stood at 3,715 won, skyrocketed more than sixfold, peaking at 23,350 won by December 21. This unusual surge sparked suspicions of insider trading, particularly as rumors linked the company to Lee Jung-Jae and prominent figures like Han Dong-hoon.
A photo of Lee Jung-jae and Han Dong-hoon dining together circulated online during this period. This image fueled speculation and contributed to what some called a “theme stock” frenzy, where investors jumped in based on perceived insider connections.
Focus on Key Individuals
The investigation has turned its attention to Park In-gyu, a former CEO of Wizwiz Studio and a central figure in the acquisition. Park has long-standing ties to Lee Jung-jae’s business ventures and is linked to several other companies, including Com2uS Holdings, Wizwiz Studio, and Four Creative Party. All three are part of the Com2uS Group.
Authorities have extended their probe to other businesses affiliated with Park, including drama production company Raemongrain (now Artist Studio). Earlier this year, Park joined Lee Jung-jae and Jung Woo-sung in acquiring management rights to Raemongrain. Former CEO Kim Dong-rae of Raemongrain has since filed a fraud complaint against Park, alleging corporate manipulation.
Seized Documents and Statements
The Financial Services Commission confiscated contracts, meeting records, and other documents during the raids. Companies under scrutiny include Artist Company, Com2uS Holdings, Wizwiz Studio, and others linked to Park In-gyu.
In response, Lee Jung-jae’s representatives acknowledged that Wider Planet had faced a financial investigation in the past. However, they stressed that neither Lee Jung-jae nor the Artist Company is a subject of the current investigation.
Denial of Insider Trading Allegations
Lee Jung-jae’s team firmly denied any involvement in illegal activities. A statement clarified, “Lee Jung-jae had no connection to insider trading or information leaks during Wider Planet’s third-party capital allocation.” They emphasized their commitment to clearing up any misunderstandings and pledged to take legal action against those involved in unlawful activities.
Merger Plans Move Forward
Despite the controversy, Artists United and Artist Company are preparing for a merger. A shareholders’ meeting on November 13 will address the merger and related agenda items.
The outcome of the investigation remains to be seen, but Lee Jung-jae’s team continues to defend his reputation. Financial authorities are expected to provide updates as they examine the allegations.
Kavita Mishra is a dynamic writer and passionate Korean entertainment enthusiast, combining her love for K-pop and K-drama with a flair for storytelling. With a keen eye for the latest trends, Kavita crafts articles that capture the pulse of K-pop idols, chart-topping hits, and the most buzz-worthy dramas taking over screens worldwide.
