Daishin Securities "No Preferential Redemption in Lime Fund... Prosecution Investigation Completed" Rebuttal

Daishin Securities strongly denied allegations that it attempted to prioritize the redemption of Lime Fund investments for certain clients on the 30th, stating that "there was no preferential redemption."

The previous day, some media outlets reported on a recording in which a Daishin Securities center manager visited former Lime Vice President Lee Jong-pil in October 2019, when the Lime Fund redemption suspension crisis first emerged, to lodge a complaint. The recording suggested that the Daishin Securities center manager sought ways to return money to specific clients first despite the redemption being blocked.

Daishin Securities responded by saying, "Since September 2019, there has not been a single redemption customer," and added, "The only action the sales firm could take in the situation where redemptions were blocked was to make such requests, and Lime Asset Management did not return a single penny of Lime Fund investments to Daishin Securities clients." The conversation was recorded after the full suspension of Lime Fund redemptions, when the center manager visited Lime Asset Management to protest. The Daishin Securities center manager pleaded for the return of clients' funds, but Lime ignored the request.

Furthermore, Daishin Securities explained that all materials, including the recording, were submitted as evidence in related trials following multiple investigations and a search by prosecutors concerning the Lime Fund incident. The prosecution recognized the fact of incomplete sales of the fund, and the center manager featured in the recording was sentenced to two years in prison for unfair solicitation and has already served the sentence. As the sales firm, Daishin Securities compensated investors 80% of their investment amount according to the Financial Supervisory Service’s Dispute Mediation Committee’s compensation plan. Former Lime Vice President Lee is currently serving a 20-year prison sentence.

The key point is that there was absolutely no "preferential redemption" for any individual during the entire process. A Daishin Securities official stated, "The recording has already been disclosed to multiple parties including the prosecution," and expressed frustration, saying, "No returns were made on the suspended redemption funds, so all customers suffered losses."