Financial Supervisory Service Assigns Two Examiners to Lime Asset Management

Focused on Smooth Fund Repayment... Minimizing Investor Losses

[Image source=Yonhap News]

[Asia Economy Reporter Ji-hwan Park] Financial authorities will assign inspection officers to Lime Asset Management, which has caused a redemption suspension incident involving approximately 1.6 trillion won.

According to financial authorities on the 5th, the Financial Supervisory Service (FSS) plans to assign two employees from the Asset Management Inspection Department to work related to Lime Asset Management around the 7th, when Samil Accounting Corporation is scheduled to deliver the results of the accounting audit on Lime’s master funds 'Pluto FI D-1', and 'Tethys 2' to Lime Asset Management.

These employees will assist Lime Asset Management in the smooth repayment of fund capital to reduce losses for investors. They will also mediate potential conflicts that may arise after the audit among investors, Lime Asset Management, distributors, and securities firms that have entered into total return swap (TRS) contracts.

An FSS official stated, "The exact timing of the employee dispatch has not been finalized yet, but it is highly likely to coincide with the release of Samil Accounting Corporation’s audit results. However, if the situation is well managed, we will not force the dispatch."

Previously, Lime Asset Management suspended repayments and redemptions of sub-funds worth 1.5 trillion won invested in three master funds: Pluto FI D-1, Tethys 2, and Pluto TF-1, in October last year. Since then, Samil Accounting Corporation has been conducting audits on these funds.

Lime Asset Management is expected to receive the audit results on the 7th, carry out internal processes such as reflecting the base price, and announce the audit results around mid-month. Subsequently, detailed repayment schedules for each fund are expected to be disclosed next month.

The FSS is currently considering whether to announce the interim inspection results on Lime Asset Management and the results of the comprehensive private equity fund survey. The survey has been conducted since November last year, targeting about 50 companies.

A financial authority explained, "Once Samil Accounting Corporation completes the audit of Lime Asset Management’s funds, Lime will go through a process of adjusting the base price to determine the extent of investors’ losses. At this time, if the financial authorities announce an interim inspection stating that 'illegal activities were found at Lime,' it could cause unnecessary confusion in the market, so we are carefully considering whether to make such an announcement."

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