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Lee Jung Jae Facing Fraud Allegations Before Upcoming ‘Squid Game’ Release

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Allegations surrounding actor Lee Jung Jae, embroiled in a management rights dispute, continue to surface.

The Newdaily reported suspicious connections between Lee Jung Jae’s faction and Chorokbaem Media.

On August 10, news broke that Lee Jung Jae and former WYSIWYG Studios CEO Park In Kyu are being investigated for fraud under the Specific Economic Crimes Act. According to industry insiders, the complainant is Kim Dong Rae, the CEO of the drama production company RaemongRaein. Kim claims that Lee and Park approached him with the intent of corporate raiding to seize control of RaemongRaein.

Kim alleges that the two initiated efforts to acquire another listed company (Chorokbaem Media), currently under trading suspension, using RaemongRaein’s cash reserves of 20 billion won (approximately $15 million). He stated, “They showed no interest in growing the company as they promised and instead focused solely on acquiring Chorokbaem Media.”

In response, Artist United, a software development company where Lee Jung Jae is the largest shareholder, described Kim’s claims as “completely unfounded one-sided assertions” and countersued him for defamation and fraud.

Newdaily confirmed multiple connections between Lee Jung Jae’s faction and Chorokbaem. The report indicated that executives from Chorokbaem Media had previously served on the executive team of Wider Planet (now Artist United), which was acquired by Lee Jung Jae’s faction, raising ongoing suspicions of involvement.

Established in 2007, RaemongRaein has produced popular dramas such as Sungkyunkwan Scandal and Reborn Rich. Artist United acquired RaemongRaein through a capital increase in March.

Lee Jung Jae is cast in Netflix’s Squid Game Season 2, set to premiere on December 26. First released in 2021, Squid Game garnered significant attention worldwide, and many fans are excited for the second season.

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