Raem Asset Management's Redemption-Deferred Fund Increases to 1.67 Trillion KRW... March Repayment Plan Announced

[Image source=Yonhap News]

[Asia Economy Reporter Ji-hwan Park] Lime Asset Management has acknowledged an increase in funds with redemption suspensions in addition to the previously suspended funds. They also announced plans to form a tripartite consultative body with the banks and securities firms that sold the funds.

On the 15th, Lime Asset Management released a statement saying, "Recently, the parent fund 'Credit Insured Trade Finance Fund' and 16 subsidiary funds invested in it may experience additional redemption suspensions starting from March, and we informed the distributors of this on the 6th." They explained that among the assets invested by this fund, some, including the previously redemption-suspended 'Pluto FI D-1', are facing liquidity issues, which may delay redemptions.

The total amount set for the newly decided redemption suspension funds and sub-funds is approximately 294.9 billion KRW. Among these, about 120 billion KRW linked to assets with actual liquidity problems are considered highly likely to face redemption suspensions. As a result, the total number of parent funds with redemption suspensions has increased to four, with 173 related sub-funds. The total amount involved is 1.6679 trillion KRW.

Lime Asset Management stated, "The disclosed amount is based on the amount customers have invested in the funds," adding, "Accurate expected loss amounts will be identified through future due diligence." They continued, "Redemption suspensions require cooperation among multiple stakeholders to resolve," and announced, "We are discussing forming a consultative body involving Lime, 16 distributors, and three securities firms contracted for TRS, and plan to sign a Memorandum of Understanding (MOU)."

Lime Asset Management plans to receive the final due diligence report on the redemption-suspended funds from Samil Accounting Corporation around mid-February, and thereafter, within one month, will review the asset recovery schedule and inform customers. Accordingly, Lime Asset Management is expected to announce the due diligence results and investment recovery schedule by March at the latest.