View of Yuanta Securities’ headquarters in Yeouido, Seoul. Yuanta Securities
Yuanta Securities Korea has lost the first-instance ruling in a lawsuit it filed against VIG Partners and others seeking the return of allegedly unlawful distributions tied to damages arising from the sale of Tongyang Life Insurance.
The 30th Civil Division of the Seoul Central District Court, presided over by Chief Judge Kim Seok-beom, ruled against Yuanta Securities on Friday in the 135 billion won unlawful distribution return claim filed against 14 defendants including VIG Partners.
The court dismissed the claims against some defendants, finding that Yuanta Securities did not hold a preserved claim qualifying it to bring a creditor’s subrogation suit. For the remaining defendants, the court rejected the claims, ruling that no obligation to return unjust enrichment existed.
The lawsuit stems from a damages dispute over meat-collateralized loans that surfaced during the sale of Tongyang Life Insurance to China’s Anbang Insurance Group. Anbang sought damages through the International Chamber of Commerce (ICC) arbitration tribunal, claiming it had suffered losses because it was not adequately informed of the risks related to those loans during the acquisition.
The ICC arbitration tribunal ruled that the sellers, including Yuanta Securities, were liable to pay Anbang approximately 166.6 billion won in damages. Yuanta Securities subsequently paid Anbang about 191.1 billion won, including litigation costs.
Yuanta Securities then filed the lawsuit in January last year, arguing that other sellers, including VIG Partners, should bear a portion of the damages it had paid.