Shares of Artist United , a company majority-owned by actor Lee Jung Jae , have fallen more than 20%, sparking panic among individual investors. The sharp drop comes after allegations of insider trading surrounding the company, formerly known as Widerplanet .

As of 11:11 a.m. on December 6, Artist United shares were trading at KRW 13.270 (approximately $9.34), marking a 21.62% drop from the previous day. At one point, the stock price hit the low limit of KRW 11.860 (approximately $8.35). The selloff appears to have been triggered by reports that financial authorities are investigating alleged insider trading activities related to the company.

According to media reports, a group of individuals allegedly preempted the acquisition of Artist United by actors Lee Jung Jae and Jung Woo Sung . They allegedly manipulated the stock price, presenting it as a politically themed investment, to inflate its value and profit from the increase. Authorities suspect that these individuals intentionally increased the stock price for financial gain and are currently investigating the details.

In its statement, Artist United denied any wrongdoing on Lee Jung Jae 's part, stating that he is only involved as a witness in the investigation. The company stressed that neither Lee nor his management agency, Artist Company , are linked to illegal activities such as insider trading or information leaks during Widerplanet 's capital increase.

“While it is true that the former Widerplanet (now Artist United) is under investigation by financial authorities, Lee Jung Jae and Artist Company are not subjects of the investigation. We will actively cooperate to clarify any misunderstandings,” Artist Company stated. The company also promised to take strict legal measures against any party involved in insider trading or information leaks to protect its shareholders.

Artist United, which specializes in marketing platforms powered by big data and AI, was founded in 2010 and listed on the KOSDAQ exchange in February 2011. In December last year, Lee Jung Jae and Jung Woo Sung acquired a majority stake in the company through a third-party capital increase. The company's name was changed to Artist United in March 2023 and merged with Artist Company in November. The insider trading allegations date back to the announcement of Widerplanet 's capital increase last year, when a surge in prices and trading volumes fueled suspicions.

Despite the ongoing controversy, Artist United has pledged to conduct its own investigation and hold those responsible accountable, with the aim of minimizing damage to shareholders.