'Squid Game' star Lee Jung Jae faces fraud accusations

The 52-year-old actor is under investigation by the Gangnam Police in Seoul following a complaint filed in June, according to The Chosun Daily.

The complaint, lodged by Kim Dong Rae, CEO of the Kosdaq-listed drama studio RaemongRaein, accuses Lee and Park In Kyu, the former CEO of WYSIWYG Studios, of fraud under the Specific Economic Crimes Act.

South Korean actor Lee Jung Jae, star of Netflix drama "Squid Game". Photo from his Instagram

According to Kim, Lee and Park misled him by claiming that their involvement as major shareholders would significantly boost RaemongRaein’s growth, prompting him to transfer his shares.

However, after obtaining the shares, Lee and Park allegedly tried to exclude Kim from the company’s management. Kim further alleged that, despite agreeing to jointly manage the company, Lee and Park did not honor this commitment.

Instead, they reportedly used 20 billion won (approximately US$14.5 million) of RaemongRaein’s funds to acquire another listed company, Chorokbaem Media, which had its trading suspended.

Kim argued that this acquisition took precedence over RaemongRaein’s growth.

In response, Lee Jung Jae has filed a countersuit against Kim, accusing him of making false allegations and fraud. Lee’s legal team argues that the contract in question clearly indicated a transfer of management rights, countering Kim’s claims.

The Gangnam Police have announced plans to conduct formal interviews with Lee Jung Jae and Park In Kyu regarding the allegations. The case has attracted significant public attention due to Lee’s high profile in the entertainment industry.

Lee Jung Jae won Outstanding Lead Actor in a Drama Series at the 2022 Emmy Awards for his role in Squid Game, becoming the first Asian to win in the category, according to the Straits Times.