Actress sues plastics firm over deal claim

See-saw in company's share price over row proves the power of entertainers

The South Korean star of the hit television drama Jewel in the Palace has started legal proceedings against a Korean manufacturer which has been accused of trying to artificially boost its share price by linking itself with the top actress.

In a controversy showing the pulling power of celebrities, actress Lee Young-ae is set to sue plastics manufacturers Nuvotec after an apparently unauthorised announcement last week that it was going to enter the lucrative entertainment industry by buying a majority stake in a new company which would manage Lee.

Nuvotec's shares, which are listed on the Kosdaq, experienced a temporary fillip immediately after the announcement. However, when Lee learned of the affair, she rapidly issued a counter-statement denying any knowledge of the deal.

'Ms Lee herself, her family members and the agency have not discussed the issue with Nuvotec and have no plan to do so in the future,' her spokesman said.

Nuvotec's president was forced to make a public apology saying the affair had all been the result of a 'misunderstanding'.

'I can't accept its apology because my family and I suffered a great deal,' South Korea's Yonhap news agency quoted the actress as saying.