Teheran-ro Centerfield Building, owned by 'Aigis Asset Management'. Reporter Lim Yo-hee

The sale of Aegis Asset Management, Korea's No. 1 real estate asset management company, is facing difficulties amid controversy over foul play.

According to the financial investment industry on the 14th, Heunguk Life Insurance, which participated in the acquisition bidding, has filed lawsuits against five individuals, including Morgan Stanley, the sale manager, and related parties, regarding the bidding process for Aegis Asset Management. Furthermore, the Financial Supervisory Service is delaying the major shareholder eligibility review as the National Pension Service, a key investor, is considering withdrawing its funds.

Heunguk Life Insurance argued that the manager had stated they would not proceed with a "progressive bid" (auction-style bidding) before the main bid, leading them to submit the highest price, but this was suddenly changed, raising issues of procedural fairness.

In the main bid, Heunguk Life Insurance offered the highest price of 1.05 trillion KRW. Chinese private equity fund (PEF) Hillhouse Investment (Hillhouse) and Hanwha Life Insurance submitted bids in the 900 billion KRW range, making Heunguk Life Insurance's victory seem certain.

However, after the main bid, sale managers Morgan Stanley and Goldman Sachs selected Hillhouse as the preferred bidder after it revised its bid to 1.1 trillion KRW.

Heunguk Life Insurance stated, "The fairness that should have been maintained in price formation and competition methods has been destroyed, and Heunguk Life Insurance has been deprived of the fair position it should have received in this bid, losing the rightful opportunity to be selected as the preferred bidder." They added, "We are also considering the possibility that the bid price may have been leaked to Hillhouse."

Additionally, it has been reported that the National Pension Service is protesting after confirming that Aegis Asset Management provided reports related to entrusted funds to Hanwha Life Insurance, Heunguk Life Insurance, and Hillhouse without prior approval.

The reports contained key information such as fund size, valuation, and asset status. The National Pension Service had an agreement that prohibited the provision of such information for six core funds without prior consent.

The industry believes that if the National Pension Service withdraws its approximately 8 trillion KRW in funds, Aegis Asset Management's corporate valuation will inevitably need to be reassessed. Furthermore, it is rumored in the industry that other public institutions may also consider withdrawing their investments due to the departure of the National Pension Service.

Some critics have pointed out, "If an American company engaged in such foul play, wouldn't the Democratic Party immediately call for a parliamentary investigation, vowing to eradicate unfair foreign capital transactions?" They questioned, "Is there silence because Chinese capital is involved?"

Moreover, they countered, "Aegis Asset Management operates assets directly related to national security, such as the Busan Port Grain Terminal and the Hanam Data Center. It is absurd to hand over national infrastructure to those who have not even secured procedural legitimacy in the process."

Meanwhile, Aegis Asset Management (CEO Lee Gyu-seong, Kang Young-goo) is Korea's largest real estate asset management company, with total assets under management (AUM) of 66.8 trillion KRW as of the first half of this year. It was established in 2010 under the name PS Asset Management and changed its name to its current one in 2012.

The founder was Chairman Kim Dae-young (deceased in 2018). Born in Anju, Hwanghae Province in 1937, he graduated from Kyungbok High School and Yonsei University before earning a Ph.D. in Statistics from Stanford University. He began his career as a senior researcher at the Korea Development Institute in 1961 and was appointed Vice Minister of Construction in 1990.

He subsequently served as President of Korea Land & Housing Corporation, Chairman of the Overseas Construction Association for the 9th and 10th terms, and CEO of Koramco Asset Trust.

Reporter Lim Yo-hee