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Lime Asset Management, which triggered the buyback of private equity funds worth 1.6 trillion won last year, was sanctioned by the Financial Supervision Service on the 20th.
The Financial Oversight Service held a sanctions review committee chaired by Senior Vice President Kim Geun-ik on the same day, and proposed an order to cancel the registration and transfer the trust agreement to Lime Asset Management, and request the firing of executives as CEO Won Jong-jun. The Financial Supervision Service decided that Lime Asset Management violated article 85 of the Capital Market Law, which prohibits the promotion of own or third-party profits while harming the profits of certain collective investment schemes (private equity funds).
The Financial Supervision Service also suggested a partial suspension of business for Raum Asset Management and Port Korea Asset Management, which has been instructed by Lime Asset Management, and an institutional warning to the Financial Services Commission for Raccoon Asset Management.
The Financial Supervision Service (FSS) said that considering the fact that this issue was an important issue that generated social controversy, it made this decision by sufficiently listening to the statements of the officials of the asset management company and the inspection department of the FSS , and carefully examining the facts and supporting data. The FSS sanctions review is an advisory body of the FSS, and the results of the deliberation have no legal effect, and the details of the sanctions will be finalized by the approval of the FSS and the Financial Services Commission for each person subject to actions. additional.
When the deregistration is complete, the remaining funds from Lime Asset Management will be transferred to Wellbridge Asset Management, a bridge administrator (Bad Bank). Wellbridge Asset Management, co-founded by 20 vendors, will take over Lime Asset Management’s redemption hold fund and most of the regular funds to focus on maximizing ROI.
Founded in 2015, Lime was a hedge fund that produced high and stable returns in the early days, gained word of mouth, and grew rapidly in a short period of time, making it the number one hedge fund industry. The installation amount of the Lime fund increased from 244.6 billion won at the end of 2016 to 3.622.6 billion won at the end of 2018 and 5.8672 billion won in July 2019. With the influx of money, it became difficult to find investment targets that could generate profits, so they began to walk down the path of insolvency by expanding the scope of investments to unlisted bonds and commercial financing, which are very likely to be insolvent and have a low coin.
The second sanctions trial in relation to the Lime crisis will be held on the 29th for the selling securities companies. The Financial Supervision Service has notified the three CEOs of Shinhan Financial Investment, KB Securities and Daishin Securities in advance to suspend their jobs, which are subject to severe disciplinary action.
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