Yoon Seok-heon Apologizes for Lime Scandal... On Negligence in Supervision, Says "There Was a Need for Caution"

Yoon Seok-heon, Governor of the Financial Supervisory Service

[Asia Economy Reporter Kim Hyo-jin] Yoon Seok-heon, Governor of the Financial Supervisory Service (FSS), expressed an apology regarding the large-scale redemption suspension and loss incident of Lime Asset Management's private equity fund, but drew a line on the criticism that the FSS's supervisory failure exacerbated the situation.

On the 20th, at the National Assembly's Political Affairs Committee plenary session, Yoon responded to the question from Yoo Dong-su, a member of the Democratic Party of Korea, asking, "Did the FSS take a passive and watchful approach rather than proactive and aggressive measures?" by saying, "I am sorry for causing damage to investors as a result."

Yoon further explained, "However, looking back to the time when the risk was detected, it was necessary to verify the facts thoroughly, and if that was not done well, it could have caused market confusion. The redemption procedures also had to be followed to carry out supervisory activities."

He added, "Rather than rushing, it was about following the procedures properly. So, I would like to say that we approached the matter cautiously."

Yoon also stated, "Since September last year, there were no suspicious transactions, irregularities, or fraud," and added, "It was a situation where it was difficult to say that the damage expanded as a result of the FSS's supervisory negligence."

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