Provisional Postponement of Institutional Investor Demand Forecast
Shinhan Investment Corp., which suffered an operating loss of approximately 130 billion KRW from futures trading related to exchange-traded funds (ETFs) around 'Black Monday,' is reportedly postponing the demand forecast for its corporate bond issuance.
According to the financial investment industry on the 14th, Shinhan Investment Corp. had planned to conduct a demand forecast on the 16th for institutional investors to issue 25 billion KRW worth of 2-year and 3-year corporate bonds, but this has been temporarily postponed.
Earlier, Shinhan Investment Corp. disclosed on the 11th that it incurred an estimated loss of 130 billion KRW due to on-exchange futures trading unrelated to its ETF LP business. This loss occurred between August 2 and October 10, and it is presumed that, following an unprecedented plunge in the domestic stock market triggered by US-origin recession concerns in early August, exaggerated losses were concealed by registering false swap transactions. The company detected this through its internal control system on the 10th and reported it to the regulatory authorities.
With the start of the regulatory inspection, the LP business department responsible for this incident has also been suspended. Judging that normal operations are difficult, only ETFs without liquidity supply issues will be selectively suspended, while ETF LP operations in departments unrelated to this loss will continue as usual.
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