Koramco Asset Trust recently requested the return of a 2 billion won performance deposit from Junggang Group related to a real estate acquisition deal. The request follows Junggang Holdings and its subsidiaries entering corporate rehabilitation proceedings end of last month, making the original August end transaction deadline impossible to meet. The deal involves approximately 550 billion won for three properties: two buildings in Seoul Mapo-gu Sangam-dong (JoongAng Ilbo and JTBC headquarters) and a production facility in Goyang, Gyeonggi Province, with an MOU signed in May.
Koramco Requests Return of 2 Billion Won Performance Deposit
According to investment banking industry sources on the 12th, Koramco Asset Trust recently requested Junggang Holdings to return the 2 billion won performance deposit. A Koramco Asset Trust official stated the 2 billion won was a soft deposit placed on the premise of closing the transaction by the end of August. The official explained that since the rehabilitation proceedings now require court judgment, the company cannot complete the transaction within the original schedule, prompting the deposit return request.
Corporate Rehabilitation Proceedings Delay Original August Deadline
The two parties signed an MOU in May for three assets—two buildings in Seoul Mapo-gu Sangam-dong (JoongAng Ilbo and JTBC headquarters) and a studio in Ilsan, Goyang—planning to finalize the transaction by the end of August. The situation changed when Junggang Holdings, Contentree Junggang, Megabox Junggang, and Junggang P&I entered corporate rehabilitation proceedings end of last month. Disposing of assets from a company under rehabilitation proceedings requires court approval, making it virtually impossible to close by the original August end deadline.
Deal Covers Three Properties Worth 550 Billion Won
This transaction represents Junggang Group's core asset liquidation effort to secure liquidity. The sale targets include two JoongAng Ilbo and JTBC headquarters buildings in Seoul Sangam-dong and a production facility in Ilsan, Goyang, Gyeonggi Province, with the transaction scale known to be approximately 550 billion won. Industry observers note that given the ongoing corporate rehabilitation proceedings, the future asset sale method will be determined according to the court's judgment.
Court Approval Required Before Transaction Resumes
Koramco Asset Trust and Junggang Group agreed to maintain the existing MOU while first recovering the performance deposit placed to guarantee the transaction schedule. The Koramco official stated the transaction has not been withdrawn and the MOU remains intact, adding that both parties plan to mutually discuss whether to proceed with the transaction and specific conditions after the court's judgment. The plan is to re-negotiate specific transaction conditions and schedules once the court issues its decision.
FAQ
Why did Koramco Asset Trust request the return of the performance deposit?
Koramco requested the return because Junggang Holdings entered corporate rehabilitation proceedings end of last month, requiring court approval for asset disposal and making the original August end closing deadline impossible to meet. The 2 billion won soft deposit was placed on the premise of completing the transaction by the end of August.
What properties are included in the Koramco-Junggang Group deal?
The deal covers three properties: two buildings in Seoul Mapo-gu Sangam-dong (JoongAng Ilbo headquarters and JTBC headquarters) and a production facility in Ilsan, Goyang, Gyeonggi Province. The transaction scale is approximately 550 billion won.
