Artist Studio (formerly RaemongRaein) announced on the 2nd that it plans to accelerate management stabilization led by the new management team after passing the dismissal agenda of former inside directors Kim Dong-rae and Yoon Hee-kyung at the extraordinary general meeting of shareholders held on the 30th of last month.
According to the Financial Supervisory Service's electronic disclosure system, drama production company Artist Studio held an extraordinary general meeting of shareholders and passed the dismissal of inside directors Kim Dong-rae and Yoon Hee-kyung as originally proposed. This came just over two months after replacing the inside directors with personnel from Artist United at the extraordinary general meeting held at the end of October last year.
The new management repeatedly requested the resignation of the existing board and the appointment of a new board from the side of former CEO Kim Dong-rae in accordance with the paid-in capital increase contract signed in March last year. However, due to the non-submission of resignation letters by former CEO Kim and former inside director Yoon Hee-kyung, the extraordinary general meeting of shareholders was eventually held with the court's approval, and the existing board was dismissed by shareholders' resolution.
With the approval of the dismissal agenda for former CEO Kim and former inside director Yoon at the extraordinary general meeting, RaemongRaein changed its trade name to Artist Studio and made a fresh start. Despite having a proven track record of producing killer content such as The Youngest Son of a Chaebol Family, RaemongRaein has continued to post losses in recent years, with cumulative sales of 23.6 billion KRW in the third quarter of last year, down 30.4% compared to the same period the previous year. Operating losses have also continued during the same period.
According to a company official, "Long-term deficits have continued under the previous management system, and especially since 2022, the scale has increased to a level that affects the company's existence, forcing us to enter an emergency management system," adding, "From this year, we must change completely to survive in the fiercely competitive content market."
The new management, having completed the board formation, plans to officially start management normalization by announcing an 'Emergency Management Plan' emphasizing management efficiency this year.
The Emergency Management Plan includes not only cost reduction and cost efficiency promotion but also plans to strengthen various content production capabilities, such as enhancing competitiveness in existing video content production like films and TV series, and entering new content markets such as short-form and AI-based content production.
RaemongRaein recently identified the causes of poor business performance and plans to commercialize and visualize its content assets by conducting internal due diligence and audits to assess the soundness of its content assets.
To implement these plans concretely and efficiently, an Emergency Management Chairman will also be appointed. Hyung-jo Ahn, CEO of Jidam Media, is scheduled to be appointed as the Emergency Management Chairman.
An Artist Studio official stated, "The newly appointed Emergency Management Chairman will review the soundness and business feasibility of contracted assets at Artist Studio, while striving to strengthen planning and production competitiveness to develop and improve our core business of content production."
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