On June 10th, RaemongRaein’s CEO, Kim Dong-rae, responded to the lawsuit filed by Artist United for damages and their request for an extraordinary general meeting to gain management rights. According to Kim, investor Lee Jung-jae has not visited the company and has not provided any specific plans for future management.
He stated that the current management, including himself, had expressed their refusal to accept the acquisition of a listed company that strays from RaemongRaein’s main business. In response, they were given a unilateral notice to convene an extraordinary general meeting to address the removal of the CEO, rebranding of the company, replacement of the entire board of directors, and amendment of the articles of association.
In spite of becoming the majority shareholder only three months ago, it seems that these investors are trying to manipulate RaemongRaein’s cash assets in order to acquire other companies. We cannot let RaemongRaein, which was built over 18 years through the hard work of all employees, fall prey to deceptive tactics aimed at taking over management control.
The CEO, Kim Dong-rae, made a plea, stating, “I implore Lee Jung-jae and the investors to cease their unjust efforts and instead engage in genuine and fair discussions for the advancement and betterment of RaemongRaein. We will not give in or succumb to any pressure or aggression and will retaliate with all our resources.”
At the end of the first quarter of this year, Artist United, with Lee Jung-jae as its largest shareholder, obtained an 18.44% ownership in RaemongRaein and became the company’s majority shareholder.
During the extraordinary general meeting, Artist United suggested the appointment of Lee Jung-jae, Jung Woo-sung, and two other individuals as internal directors. The meeting also covered other topics such as altering the company’s name, incorporating new business objectives, and modifying the method of making announcements.
Artist United suggested that Lee Jung-jae and Jung Woo-sung be involved in the management of RaemongRaein, but the current management has refused to cooperate, resulting in the possibility of legal action, such as a potential lawsuit for compensation.
RaemongRaein, a media content production company, debuted on KOSDAQ in 2021 and has created popular works such as “Reborn Rich”and “Sungkyunkwan Scandal”.
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