[비즈한국] Actor Lee Jung-jae has succeeded in securing management rights for RaemongRaein200350, the production company behind the JTBC drama 'Reborn Rich'. Industry insiders suggest that the acquisition of management rights by Lee Jung-jae and Jung Woo-sung signals the beginning of a full-scale transition in Korea toward a model where stars both headline and produce content.
Intended to Secure a 'Production House' From the Start
Lee Jung-jae and Jung Woo-sung already own an entertainment agency. Having been close friends and colleagues for over 20 years, the two joined forces in 2016 to establish Artist Company with the goal of creating a systematic entertainment management agency. Since then, they have recruited fellow actors, growing it into one of Korea’s leading agencies that represents talents such as Ahn Sung-ki, Yum Jung-ah, Park Hae-jin, Lim Ji-yeon, Jo Yi-hyun, and Ko Ah-sung.
However, Lee did not stop there. Through collaborations with Netflix, including 'Squid Game', he confirmed that content could reach a global market, which prompted him to pursue the acquisition of a production company. The first step was 'RaemongRaein'. Established in 2007, RaemongRaein is a drama production company that participated in the production of 'Sungkyunkwan Scandal' and 'Reborn Rich', and it was listed on the KOSDAQ market in 2021.
In March, Lee Jung-jae and Artist United040350 invested a total of 29 billion KRW to acquire 2.92 million shares of RaemongRaein through a paid-in capital increase, making them the largest shareholders. The initial plan was to expand into a production powerhouse by subsequently acquiring Chorokbaem Media; however, a conflict arose with RaemongRaein CEO Kim Dong-rae during the acquisition process, leading to a seven-month legal battle over management rights.
The dispute over management rights was resolved on the 31st of last month at a general shareholders' meeting. During the extraordinary meeting, RaemongRaein passed all agenda items, including changes to the articles of incorporation—such as changing the company name and adding new business objectives—and the appointment of Lee Jung-jae, Jung Woo-sung, and Artist United CEO Lee Tae-sung as executive directors. The agenda items for the reappointment of the previous largest shareholder, CEO Kim Dong-rae, and the appointment of director Kim Ki-yeol were voluntarily withdrawn and not presented. The company name was also changed to 'Artist Studio'.
Artist United stated, "The result clearly confirmed the 'will of the voters,' showing who the RaemongRaein shareholders wanted as their management," adding, "RaemongRaein is expected to accelerate efforts toward management stabilization." Lee Jung-jae’s side explained that they are committed to management efficiency to improve performance, given the significant deficits incurred over the past two fiscal years.
With Both an Entertainment Agency and a Production House, What Is Lee Jung-jae's Next Move?
Artist Company (an unlisted entertainment agency) lists Lee Jung-jae and Jung Woo-sung as the largest shareholders, each holding a 47.53% stake. Additionally, Lee Jung-jae is the largest shareholder of the KOSDAQ-listed Artist United with a 23.49% stake. Jung Woo-sung (4.70%) is also a specially related person of Lee, as noted in Artist United’s regulatory filings.
Artist United is a company that provides marketing services based on big data analysis and artificial intelligence (AI) to advertisers, and it announced that it would pursue film distribution as a new business starting in the first quarter of this year. By securing management rights to RaemongRaein, Lee Jung-jae now possesses an entertainment agency, a production house, and a film distribution company.
An investment industry source familiar with Lee explained, "In the U.S., famous actors don't just star in movies; they often invest directly or participate in production. Lee Jung-jae, who identified opportunities while collaborating with U.S. capital (Netflix), has pushed forward a model where he personally takes on production and investment. They say the production budget for 'Squid Game 2' is 100 billion KRW. Although the current drama and film production market is not in great shape, opportunities with OTT platforms remain valid, so we will have to wait and see what results come from Lee Jung-jae—who has made a name for himself globally—securing control of RaemongRaein."