Rain has recently become the source of a hot issue in Korea due to his latest financial decision. The popular artist / actor sold off every single one of his shares of J.Tune Entertainment.
Rain was previously the majority shareholder of J.Tune Entertainment, an entertainment company that he is signed to.
Other shareholders of the company, mainly average working folks who invested small sums (small sums in the big picture but large investments from their perspective), are in anger as Rain’s departure made the share price drop to a new low of about 28 cents. This price is very low compared to $27, the price that the shares were going for when Rain first became the majority shareholder and when many invested into the company.
Another controversy is the fact that J.Tune Entertainment paid Rain approximately $23 million to sign a contract with them – and Rain was the company’s majority shareholder, which some argue that he could have had control over how much would have been paid to himself by the company. Small-time shareholders argue that Rain abused his position as majority shareholder to pay a gigantic sum of the company’s capital, which ultimately is the shareholders’ money, to himself.
J.Tune Entertainment made $12.6 million in revenue during the period that Rain was with them. Some of the shareholders are apparently trying to put together a lawsuit against Rain; if it’s determined that Rain committed foul play, he could be charged for embezzlement among other various offenses.
However, those that are familiar with the entertainment industry say that there is no problem with the contract. J.Tune Entertainment might have only made $12.6 million after having invested $23 million in Rain, but since his contract with them will last until late 2011 (October 2011), there is still a lot of time for Rain to generate revenue for the company.
Also, Korean Financial Supervisory Services, the government agency that oversees the financial market, says that they have no problem with this matter. Their explanation is that although Rain was the majority shareholder, he wouldn’t have had control over how much he was paid by
J.Tune as it was a matter that the Board of Directors decided on, not Rain.
An industry analyst stated that the future of J. Tune Entertainment could be stormy depending on how people view Rain’s liquidation of the stock. If they view it as a break up / split from the company or rather a financial maneuver. Hopefully, things will all work out. Rain recently completed his Love Tour concert series in Japan.
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