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[Alpha Biz=(Chicago) Reporter Paul Lee] Investors in Hong Kong office buildings by domestic investors have virtually lost 90%, and financial companies that have raised or sold funds, as well as investors, are busy trying to save even a little of the principal.
Multi Asset Asset Management, an affiliate of Mirae Asset Group, which sold the Goldin Financial Global Center Building loan fund in Hong Kong in 2019, recently decided to write off 90% of the fund. Although the size of the loss has not been completely determined, it is recognized as an accounting loss assuming that the value of the asset has declined.
The Bank of Korea labor union, which had invested 2 billion won in the fund, was in danger of losing the majority of the special account fund. The special account fund is money accumulated in case the union goes on a struggle, and 2 billion won is more than half of the total fund. As Multi Asset Management decided to write off, the BOK union will also treat 90% (1.8 billion won) of the 2 billion won as accounting losses accordingly.
Woori Bank, which sold a total of 76.5 billion won worth of related funds to high-net-worth individuals, decided to compensate investors for some of their losses. Woori Bank plans to pay part of the investment principal through voluntary adjustment with investors by applying the Dispute Resolution Standards of the Financial Supervisory Service.
Mirae Asset Securities' total investment in this building is 280 billion won. At the time, the expected rate of return of the loan fund presented by Mirae Asset to market participants was about 5% per year.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
