Mirae Asset Global Investments said it would take legal action, saying global asset manager Brookfield Asset Management has not returned the deposit for International Finance Center (IFC) despite the deadline.
On the 29th, Mirae Asset issued a statement saying, "Brookfield should have paid the 200 billion won deposit, accrued interest, and all arbitration-related expenses by the 28th, but there was not a single act of compliance," and "We have completed preparations to initiate subsequent legal procedures under international law and relevant regulations."
The conflict between Mirae Asset and Brookfield began in 2021 when IFC was put up for sale. In 2022, Mirae Asset was selected as the preferred bidder for IFC, which Brookfield had listed for sale, and signed a memorandum of understanding (MOU) for the acquisition. Accordingly, it first deposited a 200 billion won performance bond. However, the REITs project that was to provide part of the acquisition funds fell through due to disapproval from the Ministry of Land, Infrastructure and Transport, and the related contract was terminated. Mirae Asset demanded that Brookfield return the entire performance bond, but Brookfield argued it could not return it because Mirae Asset Global Investments did not make efforts to obtain REITs business approval.
The Singapore International Arbitration Centre, which handled arbitration between the two sides, recently ordered Brookfield to bear the deposit refund, related interest, and arbitration expenses. However, according to Mirae Asset, the arbitration has not been carried out as of the refund deadline on the 28th.
Mirae Asset said, "An international arbitration award is a final procedure with legal force agreed upon by the international community," adding, "It is not a simple contract dispute but a mandatory performance to uphold the foundations of international rule of law and a fair market order."
It added, "Even so, Brookfield is refusing to comply and has maintained an abnormal stance that seriously undermines trust in the global investment market and the order of fair transactions," and "Until the arbitration award is fully performed, Brookfield must bear in full the daily accruing interest on delay and additional liability for damages."
Mirae Asset also plans to take legal action against Brookfield. Mirae Asset said, "We will respond firmly through all strong legal procedures, including recognition and enforcement of the arbitration award at home and abroad and provisional seizure," adding, "In addition, by transparently sharing this matter with the international community and investors, we will ensure that behavior that downplays legal rulings or evades responsibility does not remain as a precedent."