NH Investment & Securities will provide compensation for up to 70 percent of losses suffered by investors in Optimus funds. The announcement came after six rounds of emergency board meetings held to discuss the issue.
The Financial Supervisory Service (FSS) officially launched a full-fledged probe into all private equity funds. The investigation is expected to continue until 2023.
Korea Financial Investment Association (Kofia) Chairman Nah Jae-chul apologized, asked for understanding and promised to make efforts to protect investors following a rash of misconduct in the private equity space.
Private equity investments and the number of private equity funds (PEF) hit all-time highs last year, after the government eased regulations in 2015, according to the Financial Supervisory Service (FSS).