Another Fund with Redemption Suspension Emerges at Lime Asset Management

CEO Won Jong-jun of Lime Asset Management holding a press conference regarding the fund redemption delay in October last year

[Asia Economy Reporter Choi Dae-yeol] Lime Asset Management, which caused the private equity fund redemption suspension incident, has recently been found to have notified more funds of redemption suspension.

According to the financial investment industry on the 14th, Lime Asset Management is known to have sent an official letter to banks and securities firms that sold the 'Credit Insurance Trade Finance Fund,' stating that the redemption of this fund will be suspended. This fund is approaching maturity in April this year. It is a product invested in private equity funds such as 'Pluto FI D-1,' for which Lime officially announced redemption suspension, and it is reported to have been sold in amounts totaling several hundred billion won.

In the industry, as the Lime incident grows larger, it is expected that additional funds among the sub-funds investing in the previously problematic main fund may also face redemption suspension. The damage scale reached 1.5 trillion won due to two redemption suspensions last year, and there are predictions that it could reach 2 trillion won in the future.

Among the main funds with suspended redemption, the US hedge fund International Investment Group, the investment destination of 'Pluto TF-1' (Trade Finance Fund), was deregistered on charges of selling fake loan bonds, raising concerns about principal losses. Some investors have sued Lime Asset Management and the sellers for fraud and other charges, claiming they suffered damages because Lime knew about IIG's problems but did not disclose them.

This content was produced with the assistance of AI translation services.