Lime Asset investors lining up against banks and brokers

Home > Business > Finance

print dictionary print

Lime Asset investors lining up against banks and brokers

Regulators have received 320 requests for dispute resolution from investors who parked their money in Lime Asset Management’s troubled funds, according to information provided Sunday by a Korean lawmaker.

The Financial Supervisory Service is still receiving requests and hasn’t established a timeline on when to initiate arbitration related to the investing crisis. Investors who submitted requests for dispute arbitration have confirmed losses totaling 86.9 billion won ($73 million) of their principle.

Lime Asset Management, the country’s largest hedge fund manager, has indicated that it may have lost up to 1 trillion won out of 1.6 trillion that was initially invested in four problematic funds. The company froze withdrawals from the four funds last fall as problems emerged among some of the 173 smaller funds to which they are linked.

Of the 320 requests, 216 were filed against seven banks that sold the problematic funds. The remaining 110 requests were filed against eight brokerage houses according to the lawmaker, Kim Byung-wook. The requests spanned the period between Oct. 8, 2019, and Feb. 24.

Woori Bank accounted for 150 requests, in which investors disclosed a total of 41.1 billion won lost through funds sold by the bank. Among the brokerage houses, Daishin Securities accounted for the most, with 75 cases.

Some investors are also taking legal action against the fund retailers.

A group of investors on Feb. 20 filed suit against Daishin Securities for allegedly violating capital market law by failing to fulfill its responsibility to fully disclose the risks of the Lime Asset funds.

Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)

What’s Popular Now