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[Alpha Biz= Reporter Kim Jisun] Actor Lee Jung-jae’s company, Artist United (formerly Wider Planet), has once again denied allegations of improper trading, responding to claims that its stock dropped sharply due to malicious media reports. The company stated that it would pursue legal action in response to these reports.

Artist United issued a statement clarifying that when the Financial Services Commission (FSC) investigation began on December 3, investigators confirmed there were no allegations of insider trading or misconduct involving its executives and major shareholders. The company conducted a thorough internal audit and found no evidence of illegal activities such as front-running or misuse of undisclosed information. It also denied any involvement in leaking non-public information.

The company expressed concern over the "malicious and distorted" media coverage, which led to significant stock price fluctuations, including a near limit-down fall followed by a rebound near the upper limit. Artist United criticized the reporting for destabilizing the company, asserting that such actions were unrelated to its true business value or direction. It warned of legal actions, both civil and criminal, to address the damage caused to shareholders and the company’s reputation.

Earlier, on December 6, the FSC launched an investigation into allegations of front-running related to Wider Planet’s past activities, including a raid of related companies and individuals. In response, Artist United confirmed that the investigation was focused on Wider Planet, not on Lee Jung-jae or Artist Company. The company stressed that Lee had no involvement in any illegal activities surrounding a third-party share issuance by Wider Planet.

Wider Planet, a big data and AI marketing platform developer founded in 2010 and listed on KOSDAQ the following year, was acquired by Lee Jung-jae and Jung Woo-sung through a third-party private placement in December last year. The stock price surged before the announcement of the new share issuance, sparking suspicions of front-running. The company rebranded as Artist United in March this year and later announced a merger with Artist Company last month.

 

 

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