Police Assign Case of Reporting Hana Bank and Others for Selling 'Italia Healthcare Fund'

On the afternoon of the 9th, Kim Deuk-ui, Executive Director of the Financial Justice Solidarity, is speaking at a press conference held in front of the Seoul Metropolitan Police Agency in Jongno-gu, Seoul, regarding the submission of a complaint to the police against the main perpetrator of the Hana Bank Italy Healthcare Fund fraud.
[Photo by Yonhap News]

[Asia Economy Reporter Lee Gwan-joo] The police have launched a formal investigation into the case filed by victims and civic groups regarding the large-scale suspension of redemptions of the 'Italy Healthcare Fund.'

According to the police on the 23rd, the Seoul Metropolitan Police Agency assigned the case, in which Hana Bank, the fund distributor, and others were accused, to the Financial Crime Investigation Unit on the 14th.

Earlier, the Citizens' Coalition for Economic Justice, Financial Justice Solidarity, the Institute for Livelihood Economy Research, the Italy Healthcare Fund Victims' Solidarity, and the National Private Equity Fund Fraud Victims' Joint Countermeasure Committee filed a complaint with the police on the 9th against Hana Bank, seven asset management companies, and three TRS (Total Return Swap) securities firms on charges of fraud and violations of the Capital Markets Act.

They had previously filed a complaint with the Seoul Southern District Prosecutors' Office against Hana Bank and others in July last year regarding the redemption suspension incident, but criticized that the investigation had stalled and subsequently submitted an additional complaint to the police.

They claim that Hana Bank, as the distributor, caused enormous financial losses to victims by providing false explanations during the product sales process, and that there is evidence that the asset management companies and securities firms were aware of the fund's insolvency.

According to Financial Justice Solidarity, this fund is a product that invests in medical fee accounts receivable billed by Italian hospitals to regional governments. From 2017 to September 2019, 150 billion KRW worth was sold, but from the end of 2019, repayment delays and early repayment failures occurred, resulting in damages exceeding 110 billion KRW.