W283b settlement clears legal risk, reviving stalled sale of Yeouido landmark
With Brookfield Asset Management paying 283 billion won ($192 million) to Mirae Asset Global Investments for expenses tied to its failed bid for Seoul’s International Finance Center, a yearslong dispute over the landmark commercial complex in the Yeouido business district has finally come to a close.
According to industry sources, the Canada-based asset manager, headquartered in New York, paid Mirae Asset the full 283 billion won in cash on Friday. The amount includes the original 200 billion won deposit for the IFC Seoul acquisition as well as arbitration-related costs that had accumulated during the prolonged legal battle.
The dispute appeared to be settled in October, when the Singapore International Arbitration Center ordered Brookfield to return the entire down payment plus interest and all costs associated with the arbitration proceedings.
A few weeks later, however, Mirae Asset announced that Brookfield had taken no action to fulfill its obligations even after the SIAC-set deadline had passed, nor had it offered any explanation. The asset manager warned that it would pursue legal action against Brookfield.
Brookfield initially pushed back, saying it would review the SIAC decision for up to three months before deciding whether to file a motion to set aside the ruling. But a month later, Brookfield ultimately chose to honor the decision and transfer the payment — signaling a decisive end to the conflict.
Market watchers say Mirae Asset’s legal pressure may have expedited Brookfield’s compliance. On Nov. 18, the Seoul Southern District Court approved Mirae Asset’s request for a provisional attachment against the special-purpose vehicles Brookfield uses to hold IFC Seoul. A provisional attachment freezes the relevant assets, prohibiting their sale or transfer and preventing the owner from collecting income from them. The measure effectively blocked Brookfield from exercising economic control over the property, raising the stakes.
The conflict originated in 2022, when Mirae Asset was chosen as the preferred bidder to acquire IFC Seoul for 4.1 trillion won. After paying a 200 billion won down payment, the deal collapsed when the government intervened to restrict Mirae Asset’s planned financing structure. With the two sides disagreeing over who bore responsibility for the failed transaction, the case moved into international arbitration over the return of the deposit.
IFC Seoul sale back on track
With the yearslong dispute settled, the sale of the IFC Seoul, a prime mixed-use property in Seoul, looks increasingly likely to move forward.
Since Mirae Asset’s deal fell through, Brookfield has been struggling to divest the asset, with its hefty pricing keeping prospective buyers at bay.
Though it sold the Conrad Seoul Hotel portion of the property to Singapore’s ARA Asset Management in 2024, three office towers and the retail mall at the property are still up for sale.
The recent stretch of legal uncertainty had added further pressure on the process, raising concerns over a potential event of default — essentially a breach of loan obligations that would allow lenders to take action.
With the risk eliminated, Brookfield is likely to continue setting up a continuation fund, in effect refinancing the property by rolling over its limited partners while simultaneously seeking potential buyers.
Industry officials view that Brookfield may now have a better chance of securing a buyer, given the property’s low office vacancy rate and the growth trajectory of the mall.
silverstar@heraldcorp.com
