Aegis Asset Management Withdraws Samsung World Tower Remodeling Project (Comprehensive)

Sell Soon Without Profit
"No Issues in Loan Procedures... Apologize for Causing Concern"

[Asia Economy Reporter Minji Lee] Aegis Asset Management announced on the 23rd that it will withdraw from the remodeling project of ‘Samsung World Tower,’ which it purchased through a real estate fund.

This decision came just one day after Minister of Justice Choo Mi-ae instructed strict measures against illegal activities by financial speculative capital, including real estate private equity funds. The company stated that it plans to sell the purchased building without profit as soon as possible to avoid further controversy.

Last month, Aegis Asset Management planned to remodel a single apartment building located in Samseong-dong, Gangnam-gu, which was purchased through a fund. The plan was to contribute to housing supply by reconstructing and remodeling residential real estate such as apartments and villas. At the time, the company explained, “We expected that purchasing aging buildings through real estate funds invested in by institutional investors and remodeling them for additional new supply would be a good alternative for the market.”

However, due to various misunderstandings and controversies surrounding this purchase, Aegis Asset Management decided to liquidate the fund to protect investors. Amid concerns over excessive capital gains from apartment speculation, the company aims to dispel misunderstandings and controversies regardless of the original business intent.

Regarding recent allegations of violating loan regulations, the company maintains that there were no procedural issues. Aegis Asset Management purchased the apartment building for 42 billion KRW in a lump sum, borrowing about 27 billion KRW from seven Saemaeul Geumgo branches. When it was revealed that approximately 10 billion KRW exceeded real estate loan regulations during this process, Saemaeul Geumgo announced on the previous day that it would recover the excess funds of 10 billion KRW.

Aegis Asset Management stated, “Although there were no procedural problems with our loan, we apologize for causing concern amid significant public worries about residential real estate. We will promptly liquidate the fund, return the investment and loan funds to the beneficiaries and creditors, and put the apartment on the market without profit to restore normalcy.”

This content was produced with the assistance of AI translation services.