NH Securities, KTB, Daishin, and 2 Others Begin Establishing Bridge Management Company to Resolve Optimus Scandal

Capital of 4 Billion KRW... Launch Expected Around September-October
Trustee Hana Bank Participates, Depository KSD Expected to Decline

The door of Optimus Asset Management office in Gangnam-gu, Seoul was closed on the morning of October 13 last year. [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] Five sales companies of Optimus Asset Management funds have begun establishing a 'bridge management company' to handle asset recovery and compensation. Hana Bank, the trustee, is expected not to participate.

According to the financial investment industry on the 20th, five sales companies of Optimus funds, including NH Investment & Securities, Korea Investment & Securities, and Daishin Securities, have agreed this week to establish a bridge management company for the transfer and management of Optimus funds and are scheduled to sign a memorandum of understanding (MOU) to prepare specific plans.

The capital is approximately 4 billion KRW, with NH Investment & Securities, the largest fund seller, serving as the largest shareholder. The final investment ratio among the sales companies will be decided considering the sales proportions. Considering the financial authorities' approval of investment and the registration procedures for the management company, it is expected to launch around September to October.

Hana Bank, the trustee, and the Korea Securities Depository, the administrative management company, are not expected to participate. However, NH Investment & Securities has announced a lawsuit claiming damages against Hana Bank and the Korea Securities Depository, stating that they are also responsible for the Optimus incident.

Currently, sales companies such as NH Investment & Securities and Korea Investment & Securities are returning the full principal amount to investors of the Optimus funds. They plan to receive most of the fund assets held by Optimus Asset Management and focus on recovering the investment funds.

Once the fund transfer preparations are completed, the financial authorities are expected to proceed with sanctions against Optimus funds in earnest. Considering the revealed illegality, Optimus Asset Management is likely to face the highest level of sanctions, 'registration cancellation.' Previously, Optimus Asset Management attracted investors by baiting them with safe accounts receivable investments guaranteed by public institutions and local governments, then invested in non-existent distressed private bonds of insolvent companies, causing damage amounting to several hundred billion KRW.