Mirae Asset Faces Fair Trade Commission Again... Investigation into Whether SPCs Are Used to Avoid Affiliates

Fair Trade Commission Conducted On-Site Investigation of Mirae Asset at the End of Last Month

[Sejong=Asia Economy Reporter Joo Sang-don] The Fair Trade Commission is once again targeting Mirae Asset. According to industry sources on the 16th, the Fair Trade Commission has been conducting on-site investigations of Mirae Asset Consulting, Mirae Asset Securities, and Mirae Asset Insurance since around the 23rd of last month. It is reported that the Fair Trade Commission is examining whether Mirae Asset deliberately established a Special Purpose Company (SPC) to evade designation as an affiliate.

Mirae Asset Consulting sits at the top of the Mirae Asset Group's governance structure, with the controlling family holding a total of 91.86% of shares: Chairman Park (48.63%), his wife Kim Mi-kyung (10.24%), their children (24.57%), and relatives (8.43%). Mirae Asset Consulting has subsidiaries including Mirae Asset Fund Service (100%) and YKD Development (YKD, 66.7%).

Established in 2016, YKD operates comprehensive leisure facilities such as those in Gyeongdo, Yeosu City, and engages in real estate development projects. YKD separately established an SPC called GRD Development (GRD) to raise the necessary funds to acquire ownership of the Yeosu resort project initiated by Jeonnam Development Corporation. The Fair Trade Commission is investigating whether YKD, unable to secure loans from affiliated Mirae Asset Securities and Mirae Asset Life Insurance, raised funds through the SPC, and is scrutinizing any irregularities in this process. If the Fair Trade Commission determines that Mirae Asset deliberately established the SPC to evade affiliate designation, it can forcibly designate YKD as an affiliate.

Since last year, the Financial Supervisory Service has been conducting related investigations, and if the Fair Trade Commission recognizes GRD as an affiliate, it is expected to finalize whether illegal loans were made by Mirae Asset Securities and Mirae Asset Life Insurance based on this.

Previously, in May 2020, the Fair Trade Commission found that the Mirae Asset Group unfairly concentrated work orders to affiliates with large controlling family shareholdings but concluded there was no direct involvement by the controlling family. Instead of referring the case to prosecution, the Commission decided on corrective measures and imposed a fine of 4.391 billion won.

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