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Lee Jung-jae, Jung Woo-sung win lawsuit over Artist United investment dispute

Published: 06 Sep. 2025, 12:16 Updated: 07 Sep. 2025, 15:57

SEO JI-EUN
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Actor Jung Woo-sung, left, and director-actor Lee Jung-jae meet with Korean reporters in Cannes on May 21, 2022, during the 75th Cannes Film Festival, where Lee’s directorial debut film, the spy thriller "Hunt," was invited. [JOONGANG ILBO]

Actors Lee Jung-jae and Jung Woo-sung, through their investment company Artist United, have prevailed in a damages lawsuit against the former head, marking a legal victory in a high-profile management rights battle linked to the entertainment firm.

According to their legal representative, law firm LIN, the Seoul Central District Court on Friday ruled in favor of the plaintiffs, finding that the former CEO, surnamed Kim, had breached an investment agreement by refusing to transfer management rights.

The investors had sought roughly 50 billion won ($36 million) in damages and penalty fees after investing about 29 billion won in early 2024. The exact compensation amount awarded by the court has not yet been publicly disclosed.

“This ruling legally confirms the stability of our company and the protection of shareholder rights,” Artist United said in a statement. “We will continue to do our utmost to prevent unnecessary confusion caused by groundless disputes.”

Law firm LIN called the decision a significant precedent.

“The court clearly recognized liability for penalty fees and damages in cases where an agreed transfer of management rights is unilaterally refused,” the firm said. “By affirming the enforceability of penalty clauses, this ruling is an important milestone for ensuring transparency and stability in future investment agreements and governance transactions.”

Attorney Do Hyun-soo, who led the case, said the judgment carried weight beyond the immediate dispute.

“It is of great significance that the plaintiffs’ legitimate rights have been legally confirmed,” he said. “We will continue to safeguard investor rights in disputes involving investment contracts and corporate governance.”

BY SEO JI-EUN [[email protected]]