Actor Lee Jung-jae/ Courtesy of Korea Creative Content Agency

Actor Lee Jung-jae and his agency, Artist Company, denied that either the company or the actor is under investigation by financial authorities for allegations of unfair stock transactions.

In December last year, Lee and actor Jung Woo-sung acquired 45 percent and 9 percent of the shares, respectively, in the Kosdaq-listed advertising company Wider Planet through a third-party capital increase, becoming its largest shareholders. The company was renamed Artist United in March.

A media report alleged that certain groups had advance knowledge of Artist United's acquisition by actors Lee and Jung and deliberately promoted the company's stock as a political theme stock.

After it became public that Lee and ruling People Power Party leader Han Dong-hoon were high school classmates, the company's shares surged nearly tenfold, being labeled as a "Han Dong-hoon theme stock."

The authorities reportedly suspect that these individuals manipulated the stock price to gain financial profits and are currently investigating the matter.

Artist Company issued a statement on Friday, "While Wider Planet (now Artist United) was previously investigated by financial authorities, Artist Company and Lee Jung-jae are not currently targets of any investigation. Lee was not involved in any illegal activities, such as insider trading or information leaks, during Wider Planet's third-party capital increase."

The company also said that it will actively address misunderstandings surrounding Lee and Artist United.

"In addition, through an internal investigation by Artist United, we will file lawsuits and complaints against those involved in insider trading or information leaks to protect the shareholders from any harm," it said.

These statement follows a New Daily report on Friday, which claimed that the Financial Services Commission's investigation bureau had raided Artist Company. The raid is reportedly aimed to investigate allegations of insider trading and unfair transactions related to Wider Planet.

On Friday, share prices of Artist United plummeted 19.73 percent or 3,34o won to close at 14,590 won on the Kosdaq market.

This article from the Hankook Ilbo, a sister publication of The Korea Times, is translated by a generative AI and edited by The Korea Times.