[Exclusive] Woori Bank Accepts Lime Trade Finance Fund '100% Compensation' Settlement Proposal

Consideration of 'Resolving Management Uncertainty' and Others

[Asia Economy Reporter Kim Hyo-jin] Woori Bank has decided to accept the Financial Supervisory Service's dispute mediation plan for full compensation of the principal invested in the Lime Trade Finance Fund (Pluto TF-1).

According to the banking sector on the 27th, Woori Bank's board of directors is scheduled to approve this policy at the board meeting held in the afternoon.

An official familiar with Woori Bank's internal affairs said, "Given the recent resurgence of the novel coronavirus infection (COVID-19) and the expectation that domestic and international economic recovery in the second half of the year will be slow, it is understood that this consensus was reached to resolve managerial uncertainties."

Some directors who were somewhat negative about accepting the mediation plan are also reported to have formed a consensus on this purpose.

The Financial Supervisory Service's Dispute Mediation Committee passed a mediation plan in June applying 'contract cancellation due to mistake,' ordering sellers to refund the full principal to investors in the Lime Asset Management Trade Finance Fund.

This is the first time in history that a '100% principal compensation plan' has been proposed in dispute mediation involving financial investment products.

The Financial Supervisory Service initially set a deadline of the 27th of last month for acceptance, but extended the decision deadline to today at the request of sellers who needed more careful review.

Woori Bank's decision is expected to influence the decisions of other sellers such as Hana Bank, Shinhan Financial Investment, and Mirae Asset Daewoo.

The sales amounts of the Lime Trade Finance Fund are 65 billion KRW for Woori Bank, 36.4 billion KRW for Hana Bank, 42.5 billion KRW for Shinhan Financial Investment, and 9.1 billion KRW for Mirae Asset Daewoo.