Jung Il-moon, President of Hanwha Investment & Securities, "100% Compensation for Losses of 10 Private Equity Funds" (Update)

[Asia Economy Reporter Junho Hwang] "Lime, Optimus, Discovery (US Fintech), Samsung Gen2, Hastings (Popfunding), Jarvis (Popfunding), Fidelis Trade Finance, Hastings Cultural Contents, Hastings Cordelia, Mir Trust."

Investors who suffered losses by subscribing to these products through Korea Investment & Securities will receive a full refund of their investment by next month.

On the 16th, Jeong Il-moon, CEO of Korea Investment & Securities, held an emergency online press conference and stated, "We have decided to compensate 100% of the investment amount for the 10 private equity fund products involved in sales responsibility issues," adding, "This is a proactive decision made to protect financial consumers and restore customer trust."

This measure is being implemented regardless of the Financial Supervisory Service's sanctions. Compensation will be provided for 806 accounts totaling 158.4 billion KRW. In addition to the Optimus fund, which has already been compensated (28.7 billion KRW), compensation is underway for Discovery, Hastings, Jarvis, Mir Trust, and others. Approximately 80.5 billion KRW will be additionally compensated by next month.

CEO Jeong explained, "The funds subject to this are those where the sales company holds responsibility," and added, "This is not a measure considering regulatory sanctions, but a voluntary commitment to prevent such incidents in the future and a pledge not to sell problematic products."

In particular, CEO Jeong stated, "Even if the dispute resolution results or loss rates are confirmed separately, we have decided not to reclaim the compensation already paid," and "If similar issues arise with funds sold in the future, strengthened internal compensation standards will be applied."

Korea Investment & Securities has also introduced internal compensation standards reflecting the factors behind the recent private equity fund incidents and improvement plans to end incomplete sales. Efforts to recover investment assets and seek recourse from problematic counterparties (such as asset managers and other stakeholders) will be conducted simultaneously.

CEO Jeong emphasized, "This decision embodies a clear commitment to 'right thinking toward customers' and prioritizes restoring customer trust in financial products as the highest value."