Artist United has issued an official statement addressing allegations of insider trading. On December 6, reports surfaced claiming that the company was under investigation for misuse of non-public information. 

In response, Artist United stated: 

“Our company is currently facing disruptions to normal business operations due to speculation and allegations linking us to illegal activities such as insider trading and unfair transactions. It is true that we are cooperating with the financial authorities' investigation. However, this is strictly in the capacity of assisting their inquiry into suspects involved in insider trading. Investigators have confirmed that none of our executives or employees are implicated in any wrongdoing.”

The company also emphasized, “Neither our largest shareholder, Lee Jung Jae, nor Artist Company is a subject of the investigation.”

Artist United further clarified its position on past events:

“Unlawful acts such as information leaks or prearranged stock trading during the third-party allotment capital increase under the previous entity, Wider Planet, are completely unrelated to our company. We are fully cooperating with the investigation and will actively address misconceptions about the company and our largest shareholder. If any internal issues related to insider trading or information leaks are identified, we will take legal action against those involved to eliminate all doubts.”

Earlier that day, a local media outlet reported that financial authorities were investigating allegations of unfair transactions involving Wider Planet, now Artist United. The report claimed that certain groups had preemptively learned of acquisition plans and manipulated the stock price by branding it as a political theme stock, reaping substantial profits. Authorities are currently verifying these claims.

Artist Company, representing Lee Jung Jae, also issued a statement:

“It is true that Wider Planet was subject to an investigation by financial authorities in the past. However, Artist Company and Lee Jung Jae are not part of the investigation. Lee Jung Jae had no involvement in illegal activities such as information leaks or prearranged stock trading during Wider Planet's third-party allotment capital increase. We will actively respond to resolve misunderstandings about Lee Jung Jae and Artist United.

Wider Planet, acquired in December last year by Lee Jung Jae, Jung Woo Sung, and former Wysiwyg Studio CEO Park In Kyu, changed its name to Artist United in March. In 2023, it was labeled as a "Han Dong Hoon theme stock" due to the connection between Lee Jung Jae and People Power Party leader Han Dong Hoon, who are high school classmates. The stock price surged tenfold at the time.

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