Shinhan Bank Decides to Prepay Half of Lime CI Fund Subscription Amount

Advance Payment of 50% of Fund Subscription Amount Followed by Settlement According to Dispute Mediation Committee Decision
Shinhan's Statement: "Commitment to Responsible Management for Customer Protection as a Sales Company"

[Asia Economy Reporter Kangwook Cho] Shinhan Bank announced on the 5th that it held a board meeting and decided to prepay 50% of the subscription amount to customers who subscribed to Lime Asset Management's CI Trade Finance Fund.

Shinhan Bank explained that although there were many internal and external disagreements regarding the plan for the seller to pay part of the investment amount in advance before asset recovery due to investment product losses caused by the inclusion of non-performing assets from Lime Asset Management, the management and outside directors actively agreed to the decision for proactive customer protection.

This prepayment plan involves prepaying 50% of the subscription amount of Lime Asset Management's CI Trade Finance Fund and subsequently settling the balance based on the asset recovery of the fund and the compensation ratio determined by the Financial Supervisory Service's Dispute Mediation Committee. Customers who accept the prepayment plan will still be allowed to proceed with dispute mediation and lawsuits through the Financial Supervisory Service.

A Shinhan Bank official said, "Since the redemption of Lime Asset Management's CI Trade Finance Fund was suspended, we have been reviewing various customer protection measures, but due to legal issues regarding prepayment of investment products, the process was very difficult, and it took a long time to finalize the plan. We hope this will alleviate some of the difficulties faced by customers who trusted and waited for Shinhan Bank, and we will do our best in asset recovery going forward."

Shinhan Bank plans to finalize the details soon and hold briefing sessions for frontline branch employees, and will also engage in communication with customers in the future.