This article was published on Oct. 1, 2025, at 2:51 p.m. on the ChosunBiz MoneyMove site.
A settlement mediation between Yuanta Securities Korea and Atinum Partners Chairman Lee Min-ju, who previously participated in the sale of TONGYANG Life Insurance, is facing difficulties. The two sides failed to reach an agreement in the court-supervised mediation process. Earlier, Yuanta Securities Korea had shouldered the compensation related to the meat-collateral loan paid during the transfer of TONGYANG Life Insurance to China Anbang Insurance Group and filed a subrogation suit against Chairman Lee seeking return of part of that sum.
According to the investment banking and legal industries on the 1st, the first mediation related to the subrogation suit between Yuanta Securities Korea and Chairman Lee has collapsed. It has been about four months since the court decided to refer the case to mediation. In this case, Yuanta Securities Korea is represented by Shin & Kim LLC, and Chairman Lee is represented by DaeRukAju Law Offices.
The court mediation process is a method that encourages parties to voluntarily resolve disputes rather than having a trial. If the parties do not reach an amicable agreement, the court will issue a binding mediation proposing specific conditions. Accepting it has the effect of a final judgment, but if either party files an objection, the case is returned to litigation.
Earlier, Anbang Insurance Group filed for arbitration with the International Chamber of Commerce (ICC) alleging that the sellers, including Yuanta Securities Korea, Chairman Lee and domestic private equity firm VIG Partners, breached representations and warranties during the 2017 acquisition of TONGYANG Life Insurance. The claim said the sellers sold shares without disclosing the risks of the meat-collateral loans and suffered damages amounting to several hundred billion won. A meat-collateral loan is when a distributor leaves meat in a warehouse as collateral to obtain a loan from a financial institution.
In 2020 the international arbitration tribunal found the sellers liable and ordered them to pay Anbang Insurance 166.6 billion won in damages. Anbang Insurance then applied to domestic courts in Korea to recognize and enforce the arbitration award, and Korean courts sided with Anbang Insurance, ordering payment of the damages.
Afterward, Yuanta Securities Korea first paid Anbang Insurance a total of 191.1 billion won. Because the special purpose company of co-seller VIG Partners was liquidating and the calculation of loss ratios was delayed, Yuanta feared rising late fees. It subsequently filed subrogation suits against VIG Partners and Chairman Lee in January and March, respectively. At the time, it exercised subrogation rights according to shareholdings in TONGYANG Life Insurance (VIG Partners 57.5%, Yuanta Securities Korea 3%, Chairman Lee 2.5%).
The court scheduled a second mediation hearing for the 5th of next month. An industry source said, "If the court's mediation proposal is rejected in the second mediation or the parties fail to reach an agreement, the case will move to a formal trial," and added, "However, the chances of mediation seem low because the amounts each side hopes for differ."
Meanwhile, a return-of-illicit-distribution lawsuit of about 130 billion won that Yuanta Securities Korea filed against VIG Partners is proceeding as a formal trial without mediation. The first hearing is scheduled for 11:30 a.m. on the 2nd.