KRW700bn to Be Returned to Mirae Asset
Mirae Asset Global Investments announced on Dec. 9 that it has won its lawsuit against Anbang Insurance regarding U.S. hotel acquisition and Anbang Insurance must return 700 billion won, including US$580 million in down payment.
The final decision was made on Dec. 8 by the Delaware Supreme Court. Earlier, Mirae Asset signed a contract with the Chinese insurance company in September 2019 in order to acquire 15 five-star hotels for US$5.8 billion. Mirae paid the down payment and the contract was supposed to end on April 17, 2020.
After the payment, Anbang Insurance did not notify Mirae of issues such as ownership disputes. In addition, the former failed to meet preconditions for contract expiration by conducting unusual marketing activities.
Mirae sent a default notice in accordance with the contract, Anbang Insurance failed to correct things for 15 days, and Mirae sent a termination notice on May 3, 2020. Anbang filed a suit on April 27, claiming that Mirae did not make its payment for contract termination. Mirae filed a countersuit, claiming that Anbang must return the down payment.
The first instance court ruled in favor of Mirae on Dec. 1 last year. After Anbang’s appeal in March, the Delaware Supreme Court recently ordered it to pay expenditures related to the contract and both sides’ litigation costs as well as the down payment.