Actor Lee Jung-jae. [Newsis]
Actor Lee Jung-jae. [Newsis]

Artist Company, the talent agency of which actor Lee Jung-jae is the largest shareholder, has filed a police complaint against five former executives and employees over breach-of-trust allegations totaling around 680 million won ($515,000).

According to DART, Artist Company filed the complaint against five individuals — including a former unregistered executive identified only by the surname Lee — with the Seoul Gangnam Police Station on Thursday, citing violations of the Act on the Aggravated Punishment of Specific Economic Crimes related to breach of trust in the course of business.

The company put the alleged breach-of-trust amount at 681.76 million won, equivalent to 1.49 percent of its equity capital of 45.78 billion won as of the end of last year.

The figure was calculated based on findings by an outside law firm commissioned by Artist Company to conduct an investigation. However, it is not a finalized amount and may change depending on the outcome of the police investigation and any subsequent court ruling.

The complaint follows the initial disclosure of the breach-of-trust allegations on Sept. 17.

At the time, the company said it had confirmed breach-of-trust allegations against the unregistered executive surnamed Lee but did not disclose a specific amount. It said it would determine the facts and the scale of damages through an internal audit and outside legal counsel before pursuing necessary legal action, including a claim for damages.

Meanwhile, Artist Company was co-founded in 2016 by Lee Jung-jae and Jung Woo-sung. Lee currently holds a 27.10 percent stake as the largest shareholder, while Jung holds 10.99 percent.

Jung stepped down from his position as a registered director of Artist Company on Oct. 2, about six months before his term was set to expire. He did not sell his stake and remains on the agency's roster as an actor.


yeonjoo7@heraldcorp.com