"Neglect of Duty by Excluding Specific Beneficiaries"
"Need to Verify Whether Mirae Asset Securities Violated the Capital Markets Act"
Regarding the controversy over preferential redemptions in the Lime Fund case, Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), stated that it is a "clear violation of the Capital Markets Act."
At the full meeting of the National Assembly's Political Affairs Committee held on the 4th, Governor Lee responded to the question, "Isn't the issue of whether the asset management company and the sales company exchanged information or whether there was any illegality something that should be determined through a prosecution investigation rather than an FSS investigation?" by saying, "Open-ended funds were funds that could not be normally redeemed even at that time, and in that respect, the violation of the Capital Markets Act is clear. What needs to be confirmed through investigative agencies are the full details of the case, collusion relationships, background, and additional benefits granted, but the redemption itself is clearly illegal."
He added, "The beneficiary was a specific individual, and in the process, the sales company and the asset management company knew that these specific individuals were high-ranking public officials," and said, "I thought it was necessary to inform the public to raise reasonable suspicion and prevent such situations from recurring, and conversely, excluding specific beneficiaries would be dereliction of duty."
In response to People Power Party lawmaker Choi Seung-jae's question, "Do you think that giving some money extra to a specific person as a return was preferential treatment?" he emphasized, "It is indeed a beneficiary of profits derived from illegal acts in violation of the Capital Markets Act."
Regarding inquiries about redemption issues related to sales companies such as Mirae Asset Securities and the Lime Fund, Governor Lee replied, "What is certain is that both the sales company and the asset management company knew that the money belonged to high-ranking public officials and took action accordingly." Additionally, in response to People Power Party lawmaker Kang Min-kook's question, "If Mirae Asset Securities knowingly encouraged investors to redeem, would that be a violation of the Capital Markets Act? Do you agree?" he said, "If that were the case, it could be so," and added, "The facts need to be confirmed."
Earlier, on the 24th of last month, the FSS announced the results of additional inspections of three asset management companies?Lime, Optimus, and Discovery Asset Management?under Governor Lee's directive, revealing that some influential figures, including multi-term members of the National Assembly, received their investment funds back just before the redemption suspension related to the Lime incident. Kim Sang-hee, a member of the Democratic Party of Korea who was identified as a party involved, denied involvement in the redemption process and demanded an apology from Governor Lee, staging a sit-in protest.
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