Financial Supervisory Service to Conduct On-Site Investigation of Lime Scandal Starting from the 9th

[Asia Economy Reporter Ji-hwan Park] The Financial Supervisory Service (FSS) will conduct an on-site investigation on the 9th regarding the suspension of redemptions of Lime Asset Management's private equity funds. Lime Asset Management and Shinhan Financial Investment are the targets.

According to financial authorities on the 2nd, the FSS set the 9th as the start date for the on-site investigation, delayed by about a month from early March due to the impact of the novel coronavirus disease (COVID-19) pandemic.

The FSS plans to first examine Lime Asset Management and Shinhan Financial Investment. They are suspected of concealing the occurrence of defaults in the trade finance fund ('Pluto TF-1'), which has a possibility of total loss, and continuing to sell the fund.

Samil Accounting Corporation is scheduled to announce the results of the trade finance fund's accounting audit on the 3rd. The trade finance fund, involved in a Ponzi scheme by a U.S. hedge fund, is known to be almost entirely lost.

The FSS plans to conduct the on-site investigation based on the audit results of the trade finance fund. Starting from the 20th, they will sequentially investigate the banks and securities firms that sold the fund.

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