Woori Bank Accepts Joint Prepayment Plan for Lime Fund Sellers

Decision to Prepay for Investor Protection as Lime Fund Distributor

[Asia Economy Reporter Kangwook Cho] Woori Bank announced on the 5th that it held a board meeting and confirmed its decision to accept the joint advance payment plan by banks selling Lime Fund products.

The funds subject to advance payment are Pluto and Tethys, which have suspended redemptions, totaling approximately 260 billion KRW. Trade finance funds currently under dispute mediation by the Financial Supervisory Service were excluded.

Woori Bank will pay the amount calculated by summing the minimum expected recovery amount and loss compensation amount after individual agreements with investors. The advance payment amount per fund is about 51% of the principal. However, the AI Premium Fund, which applies TRS (Total Return Swap), is expected to be at the level of about 30% of the principal.

Investors will receive the advance payment compensation through individual private settlement contracts with Woori Bank, and later settle the difference between the final compensation amount decided through the Financial Supervisory Service's dispute mediation committee and the advance payment compensation. Finally, compensation for recovered investment funds and confirmed losses will be settled according to Lime Asset Management's asset liquidation plan.

A Woori Bank official said, "We decided to advance part of the investment funds as Lime Asset Management's asset liquidation plan will be implemented over five years."