Prosecutors Raid Lime Asset Management and Securities Firms Over 'Redemption Suspension Crisis'

[Asia Economy Reporter Yoo Byung-don] The prosecution investigating the Lime Asset Management redemption suspension incident has launched a surprise raid on related financial investment firms.

The Criminal Division 6 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Cho Sang-won) sent prosecutors and investigators on the morning of the 19th to secure materials from the Lime Asset Management headquarters office in Yeouido, Seoul, and related financial companies such as Shinhan Financial Investment.

Earlier, investors who suffered losses due to the Lime Asset Management redemption suspension incident filed complaints against Lime Asset Management officials and representatives and related personnel of securities firms that sold the company's products for violations of the Capital Markets Act. The Financial Supervisory Service also requested an investigation by the prosecution into former Vice President Lee Jong-pil of Lime Asset Management, who is currently missing, and former Head Lim of Shinhan Financial Investment on charges of fraud and breach of trust.

Currently, there are four Lime funds with suspended redemptions, with a total of 173 sub-funds invested in the corresponding master funds, and the number of accounts reaches 4,616. The industry estimates that the total loss amount reaches up to 1 trillion won.

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