Lime Fund Sells 400 Million KRW Per Person by Shinhan Investment Corp. Accused of Fraud

Shinhan Bank Has the Highest Sales per Person

[Asia Economy Reporter Park Ji-hwan] Among the financial companies that sold Lime Asset Management's suspended redemption private funds, the company with the largest sales amount per individual investor was Shinhan Bank, reaching 430 million KRW. Shinhan Financial Investment, which is under suspicion of fraud related to the trade finance fund (Pluto TF No. 1), also exceeded 400 million KRW in sales per individual investor.

According to the Financial Supervisory Service on the 20th, as of the end of last year, redemption delays occurred in four master funds managed by Lime Asset Management and 173 sub-funds related to these master-sub relationships. There are 18 sub-fund sellers for individual investors, with total sales amounting to 994.3 billion KRW.

The financial company with the largest sales amount to individual investors was Woori Bank, with 253.1 billion KRW. This was followed by Shinhan Bank (169.7 billion KRW), Shinhan Financial Investment (120.2 billion KRW), Hana Bank (79.8 billion KRW), and Daishin Securities (69.1 billion KRW).

The company with the highest sales amount per individual investor was Shinhan Bank at 430.71 million KRW. NH Investment & Securities (427.27 million KRW), Meritz Securities (418.13 million KRW), and Shinhan Financial Investment (407.1 million KRW) followed. The average sales amount per individual investor across all sellers was 246.42 million KRW.

In particular, some sellers are facing allegations beyond incomplete sales, including fraud charges. Currently, Shinhan Financial Investment is suspected of continuing to sell the fund while concealing the fact that the trade finance fund had become insolvent. Regarding this, the Financial Supervisory Service announced on the 14th, during the interim inspection results of Lime Asset Management, that such actions could constitute fraud. The prosecution also conducted a search and seizure at Shinhan Financial Investment on the 19th. Previously, investors who suffered losses from Lime Asset Management's redemption suspension filed complaints against the CEO and officials of Shinhan Financial Investment for violations of the Capital Markets Act and other charges.