The entertainment and tech firm Artist United, led by acclaimed actors Lee Jung Jae and Jung Woo Sung, is under scrutiny after a dramatic 21.62% drop in its stock value, amid allegations of insider trading.

As of 11:11 a.m. on December 6, the company’s stock traded at 13,270 KRW (approximately $9.34), following reports of an ongoing investigation by financial authorities. At its lowest point during trading, shares hit 11,860 KRW ($8.35), sparking alarm among individual investors.

What Sparked the Allegations?

Media reports suggest that a group of individuals may have manipulated the company’s stock ahead of its acquisition by Lee Jung Jae and Jung Woo Sung last year. These individuals allegedly inflated the stock’s value by branding it as a "political-themed" stock, profiting from the resulting price surge. Authorities believe these activities coincided with Widerplanet’s—Artist United’s former name—announcement of a third-party capital increase in 2022.

Denial from Artist United

Artist United, which focuses on big data and AI-driven marketing, has firmly denied any involvement by Lee Jung Jae or his agency, Artist Company, in the alleged insider trading.

“While it is true that the former Widerplanet is under investigation, neither Lee Jung Jae nor Artist Company are subjects of the probe. We will cooperate fully to clarify any misunderstandings,” the company stated.

The agency also vowed to pursue strict legal action against any parties found guilty of manipulating the stock, assuring shareholders of their commitment to transparency and accountability.

Background on Artist United

Established in 2010, Widerplanet went public on the KOSDAQ market in 2011. Lee Jung Jae and Jung Woo Sung acquired a controlling stake in December 2022, later rebranding the company as Artist United in March 2023 and merging it with their entertainment agency, Artist Company, in November.

The insider trading allegations stem from a surge in trading volume and stock price during Widerplanet’s capital increase announcement last year, which first raised suspicions.

The Fallout

The ongoing controversy has dealt a blow to Artist United’s stock value and reputation. The company has pledged to conduct its own investigation and hold any wrongdoers accountable to protect shareholder interests.

As the financial authorities’ investigation unfolds, all eyes are on Lee Jung Jae and Jung Woo Sung, whose names have become entwined in this high-stakes financial drama.

Stay tuned for updates on this developing story.