Mirae Asset accuses Brookfield of unreturned IFC deposit despite arbitration ruling

The International Finance Center (IFC) in Seoul’s financial district of Yeouido, the property Mirae Asset Global Investments sought to purchase from the Canadian investment firm Brookfield, is shown in this undated photo. Yonhap

Mirae Asset Global Investments accused Brookfield, a Canadian multinational investment firm, Wednesday, of failing to comply with an international arbitration ruling in its favor over a botched property deal in Seoul’s financial district of Yeouido.

The asset management arm of Mirae Asset Financial Group said it is preparing further legal action against Brookfield, claiming the firm has not returned a 200 billion won ($139.5 million) deposit related to the deal, along with accrued interest and arbitration-related costs.

“An international arbitration award is a legally binding and final judgment recognized by the international community,” the Korean firm said in a statement. “Nevertheless, Brookfield has refused to comply and continues to take an abnormal stance that seriously undermines trust and fair trading order in the global investment market."

The statement came a day after the Tuesday deadline for Brookfield to pay back the 200 billion won deposit, with interest due and arbitration-related costs, as ordered by the Singapore International Arbitration Centre (SIAC) in its recent ruling concerning the International Finance Center (IFC) in Yeouido.

The SIAC ruling stems from a dispute that began in 2021, when Mirae Asset Global Investments agreed to acquire IFC from Brookfield.

Mirae Asset Global Investments was selected as the preferred bidder in 2022 and signed a memorandum of understanding, paying a 200 billion won performance deposit.

However, the deal collapsed after the Ministry of Land, Infrastructure and Transport rejected Mirae Asset Global Investments’ plan to finance part of the acquisition through a real estate investment trust (REIT).

Mirae Asset Global Investments demanded the deposit be returned, while Brookfield refused, arguing that the Korean firm had not made sufficient efforts to obtain REIT approval. The dispute was subsequently taken to arbitration.

Mirae Asset Global Investments said it is now ready to take “strong legal measures,” stating, “We have completed preparations to initiate follow-up legal procedures under international law and applicable regulations.”

The company said these measures will include seeking recognition and enforcement of the arbitration award, as well as potential asset seizures both in Korea and abroad.

It also pledged to maintain transparency with investors and the international community to ensure that “disregard for legal rulings does not set a precedent.”