Meritz Group Considers Selling Meritz Asset Management

Former CEO John Lee's Alleged Use of Borrowed Name Interpreted as Impact

[Asia Economy Reporter Hwang Yoon-joo] Meritz Financial Group has decided to sell Meritz Asset Management, an affiliated asset management company from which former CEO John Lee was dishonorably dismissed. It is known that the sale process is currently underway.

On the 1st, Meritz Financial Group stated, "We are reviewing the sale with all directions and possibilities open to strengthen asset management capabilities." To this end, instead of a public sale, it is reported that one-on-one negotiations are being conducted with potential buyers through a private deal.

According to media reports, it is said that recently they have negotiated a major sale structure with a European capital firm to transfer 51% of the shares, leaving only a minority stake and stepping away from management rights.

The reason Meritz Financial Group is selling the asset management company is due to allegations of nominee investments involving former CEO John Lee. In June, John Lee was investigated by the Financial Supervisory Service (FSS) over suspicions of nominee investments while investing in a real estate-related P2P (online investment-linked finance) company operated by a friend under his wife's name. As a result, he stepped down from his CEO position. The FSS has not yet announced the investigation results.

An industry insider explained, "Since finance is based on 'trust,' it seems they judged that holding onto an asset management company with nominee investment allegations would affect other affiliates," adding, "I understand that the internal decision to sell has already been made."

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