Former Supreme Court Justice Kwon Soon-il's father-in-law loses again in 2nd trial over Hong Kong fund investment refund lawsuit

Former Supreme Court Justice Kwon Soon-il's father-in-law filed a lawsuit against financial institutions demanding the return of 1 billion KRW invested in the Hong Kong Gentu Fund, which halted redemptions, but lost again in the second trial.

Former Supreme Court Justice Kwon Soon-il. [Image source=Yonhap News]

On the 8th, the 16th Civil Division of the Seoul High Court (Presiding Judges Kim In-gyeom, Park Jeong-je, Kim Gyu-dong) ruled against Ahn Gyeong-sang, former Secretary General of the Board of Audit and Inspection and father-in-law of former Justice Kwon, in the appeal trial of the unjust enrichment refund lawsuit filed against Hana Bank and Samsung Hedge Asset Management, upholding the first trial's decision.

In 2019, former Justice Kwon and his wife were introduced to Samsung Hedge Asset Management’s “Professional Investor Private Investment Trust No. 3” fund through Hana Bank, and invested 1 billion KRW on behalf of his father-in-law. The fund was the Gentu Fund, which suffered losses exceeding 1 trillion KRW after halting redemptions due to the COVID-19 pandemic in 2020. The Hong Kong private equity fund operator Gentu Partners declared a suspension of redemptions in May 2020, and former Justice Kwon’s father-in-law was unable to recover his investment.

The first trial ruled in favor of the bank. At that time, the court stated, “It appears that former Justice Kwon had substantial decision-making authority regarding the subscription to the fund,” and “He likely fully recognized the risks of investing in the fund based on his legal knowledge.”

Furthermore, the court pointed out, “Former Justice Kwon was present when the bank staff explained the fund,” and “Given his legal knowledge of financial investment products and his experience in multiple financial investment transactions, it appears he was aware that this investment could result in significant losses.”