Brookfield Pays 283 Billion Won to Mirae Asset, Ending 3-Year IFC Dispute

Mirae Asset Global Investments has secured a final victory in its dispute with Brookfield Asset Management over the International Finance Centre (IFC) in Yeouido, Seoul. The resolution came approximately three years after legal proceedings began, with Mirae Asset receiving a total of 283 billion won ($209 million), comprising the 200 billion won performance guarantee plus delayed interest and arbitration costs.

According to investment banking sources on Wednesday, Brookfield Asset Management made a cash payment of 283 billion won to Mirae Asset Global Investments on Sunday, following the collapse of the Seoul IFC acquisition deal. The amount includes the 200 billion won performance guarantee along with delayed interest and arbitration costs.

Brookfield Asset Management had previously stated it would decide by January whether to file for annulment of the IFC ruling. Ultimately, the firm opted to pay the performance guarantee to Mirae Asset Global Investments.

In October, the Singapore International Arbitration Centre (SIAC) ruled that Brookfield Asset Management must compensate Mirae Asset Global Investments with the 200 billion won performance guarantee plus delayed interest and arbitration costs. At the time, Brookfield Asset Management indicated it would "review the ruling for up to three months and decide whether to file for annulment."

Following the court ruling, Mirae Asset Global Investments also took immediate action. The firm filed for a provisional seizure against Brookfield Asset Management with the Seoul Southern District Court, which accepted the request, with the order taking effect from November 18.

Industry observers believe the provisional seizure placed considerable pressure on Brookfield. The measure made it difficult to sell IFC stakes or proceed with restructuring, and raised the possibility of an event of default (EOD) on approximately 2.6 trillion won in loans secured against the IFC.