Banks Plan to Precompensate Lime Fund Investors for 30% of Losses
[Asia Economy Reporter Seongpil Cho] Banks that sold the so-called 'Lime Fund' are planning to compensate investors in advance for 30% of their losses and provide an advance payment of 75% of the fund's valuation.
According to the financial sector on the 15th, seven banks that sold the Lime Fund, led by Woori Bank, recently discussed this voluntary compensation plan.
For example, if the investment principal decreased from 200 million KRW to 100 million KRW, 30% of the loss amount of 100 million KRW, which is 30 million KRW, would be compensated in advance. In addition, 75% of the valuation amount of 100 million KRW, which is 75 million KRW, would be provided as an advance payment, totaling 105 million KRW.
The banks plan to hold board meetings as early as this month to approve the compensation plan. However, there remains a possibility that the plan may be revised after the board meetings. Since it has not yet been approved by the board, this compensation plan is not considered final.
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Among the total assets under custody of 1.6679 trillion KRW in 173 sub-funds invested in the parent fund of the Lime Fund, which has suspended redemptions, the amount sold by banks as of the end of last year was 814.6 billion KRW, accounting for 49% of the total.
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