Seoul High Prosecutors' Office Orders Reinvestigation of Daishin Securities over Lime Fund Redemption Cancellation

[Asia Economy Reporter Minji Lee] Daishin Securities, which was accused of canceling redemption orders without the consent of fund subscribers during the Lime Asset Management (Lime) incident but was not prosecuted, will undergo reinvestigation.

According to the legal community on the 31st, the Seoul High Prosecutors' Office issued an order on the 25th to the Seoul Southern District Prosecutors' Office to reinvestigate the accusation case against Daishin Securities.

Victims who subscribed to the Lime fund through Daishin Securities filed a complaint last year against Daishin Securities and Jang, the former head of Daishin Securities Banpo WM Center, stating, "Daishin Securities arbitrarily manipulated the computer system to cancel redemption requests without the consent of fund subscribers in October 2019."

However, the Seoul Southern District Prosecutors' Office, which investigated the case, decided in January this year not to prosecute due to insufficient evidence, stating, "The suspects made redemption requests with the consent of the complainants, but later Lime canceled the approval of the redemption requests, and it was not due to arbitrary computer manipulation." The victims protested the investigation results and filed an appeal.