Artist Company sues five former employees for breach of trust

Artist Company, an entertainment agency where actor Lee Jung-jae is the largest shareholder, has filed criminal complaints against five former employees, including a former non-registered executive. The company filed the complaints with the Gangnam Police Station on October 22, alleging occupational breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes.

The alleged damages amount to approximately 681.76 million KRW, a figure determined following an investigation by an external law firm. This legal action follows a previous disclosure in September regarding breach of trust suspicions involving a single executive. After further internal audits and legal reviews, the number of accused individuals expanded to five.

Artist Company noted that if confirmed embezzlement or breach of trust amounts exceed 3% of equity capital or 1 billion KRW, it could trigger a substantive review for KOSDAQ listing eligibility. Lee Jung-jae holds a 27.10% stake in the company. Actor Jung Woo-sung, who holds a 10.99% stake, recently resigned from his position as an internal director but remains with the agency as an actor.