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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Heungkuk Life Insurance has taken decisive action regarding the sale of IGIS Asset Management, South Korea’s largest real estate asset management firm. Following the unexpected selection of Chinese private equity firm Hillhouse Investment as the preferred bidder, Heungkuk Life filed a police complaint citing unfair selection practices.
The complaint targets five individuals, including IGIS’ largest shareholder, the shareholder representative, and Morgan Stanley Korea IB division representatives involved in the sale process. Heungkuk Life alleges that the so-called “progressive deal” method was manipulated, undermining fair competition and depriving Heungkuk Life of its rightful opportunity as a bidder.
Hillhouse reportedly raised its bid to KRW 1.1 trillion after the main auction, up from the mid-KRW 900 billion range initially offered, while Heungkuk Life had bid approximately KRW 1.05 trillion. Heungkuk Life expressed concerns that the delay of 27 days in announcing the preferred bidder may have led to the leakage of bid information, affecting the fairness of the process.
IGIS Asset Management manages funds from major domestic institutions including the National Pension Service and government employee pensions. The potential acquisition by a Chinese private equity firm has raised concerns about conflicts with domestic financial and real estate policies, as well as the risk of sensitive public real estate information being exposed. Consequently, the National Pension Service is reportedly preparing to withdraw all entrusted funds from IGIS Asset Management.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
