Artist Company, actors Lee Jung-jae, Park In-kyu, and others won a damages lawsuit against a person surnamed Kim, former representative of Artist Studio (formerly LM Entertainment).
On the 6th, the law firm Lin, which represents Artist Company, published this information in an official statement.
According to the law firm Lin, the Seoul Central District Court ruled on the 5th that 'the former representative Kim's refusal to transfer the management rights of Artist Studio is a clear violation of the investment contract,' and ordered former representative Kim to pay approximately 5 billion won in penalties and damages to Artist Company.
Earlier, Artist Company and others had entered into an investment contract with a person surnamed Kim and LM Entertainment in early 2024, investing approximately 29 billion won on the condition of a transfer of management rights. However, after the investment was completed, conflicts intensified when the representative surnamed Kim refused to transfer management rights, contrary to the contract, prompting Artist Company to engage in numerous legal battles to secure management rights of Artist Studio. This damages lawsuit was filed to hold the representative surnamed Kim accountable for breaching the contract during that process.
Artist Company noted, 'With this ruling, the stability of the company and the protection of shareholder rights have been legally confirmed,' and added, 'We will continue to do our best to prevent unnecessary confusion caused by unfounded controversies.'
The law firm Lin, which represented this case, explained the significance of the ruling: 'This ruling is a case where the court clearly recognized the liability for penalties and damages against a unilateral refusal to transfer management rights as agreed. In particular, by affirming the effectiveness of the penalty clause, it will serve as an important milestone in enhancing the transparency and stability of future investment contracts and management rights transfer transactions.'
Furthermore, attorney Do Hyun-soo (partner at law firm Lin), who handled this case, emphasized, 'It is highly significant that the plaintiff's legitimate rights have been legally confirmed,' and added, 'We will continue to do our utmost to protect the rights of investors in disputes related to investment contracts and corporate governance.'
Artist Company is a comprehensive management company founded by actors Lee Jung-jae and Jung Woo-sung. Among them, Lee Jung-jae is preparing for the new tvN drama 'A Love So Awful,' while Jung Woo-sung is working on a new original series for Disney+ titled 'Made in Korea.'
[Photo] OSEN DB.
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