Mirae Asset Under Probe for Fee Manipulation
By Park Hyong-ki
Staff Reporter
The nation's antitrust regulator said it is investigating allegations that Mirae Asset Investment Management unfairly assisted its brokerage affiliate Mirae Asset Securities.
Mirae Asset Investment Management is suspected of having provided ``preferential'' brokerage and fund sales fees to the securities affiliate.
``We completed an on-site inspection in early May and additional investigations were carried out last month,'' said an official of the Fair Trade Commission (FTC), who asked not to be named. ``We are currently looking into the case for a conclusion.''
The body initiated the probe on the asset management company after Rep. Kim Young-joo of the Uri Party said at a parliamentary session last October that the asset management unit of Mirae Asset Group paid the securities affiliate brokerage fees that are 50 percent higher than it paid to other brokerage houses.
At the same time, the FTC is also checking whether the asset management firm ``excessively'' paid commissions on the sale of funds to the brokerage affiliate.
Mirae Asset Group Chairman Park Hyeon-joo is the largest shareholder of Mirae Asset Investment Management with a 65.2 percent stake.
Mirae Asset Investment Management denied any wrongdoings involving deals with the brokerage affiliate.
``We did not fix prices,'' said an official at Mirae Asset Investment Management. ``The securities affiliate did receive a commission above those paid to other brokerages.''
He added that the firm complied with the agency's investigations.
In the second quarter of last year, Mirae Asset Securities received a brokerage fee of 0.15 percent on average from managing the sale of the asset company's ``Solomon Shares One to Make 300 Million Won'' fund, which is higher than 0.1 percent for other brokerage houses, according to Rep. Kim.
FTC officials said that the FTC is also checking whether other asset management firms irregularly assisted their affiliates with similar schemes.