New Asset Management Company to Oversee Lime Fund Established... Official Launch Scheduled for August

[Asia Economy Reporter Eunmo Koo] A newly established bridge management company (commonly known as a bad bank) will be set up to take charge of asset recovery and compensation for Lime Asset Management's fund suspension, valued at 1.7 trillion KRW. The sellers related to Lime Asset Management's suspended redemption funds plan to initiate the establishment process of the new management company within this month and complete its establishment by August.

On the 10th, the joint response team of Lime Asset Management's suspended redemption fund sellers announced that they will establish a post-management bridge management company for the transfer and management of Lime funds.

According to the joint response team, the new management company's capital will total 5 billion KRW, with each seller contributing a basic investment of 50 million KRW and additional contributions based on the proportion of their suspended redemption fund sales balance. The final investment ratio will be confirmed through a shareholders' agreement to be conducted later.

The new management company will take over not only the suspended redemption funds but also most of the funds previously managed by Lime Asset Management. However, it will act as a manager to recover assets by operating these funds and will not separately acquire assets with its own capital.

The personnel composition of the new management company will be reorganized mainly with external experts. The joint response team stated, "To ensure smooth fund transfer and efficient management, we plan to succeed employees excluding those directly or indirectly related to the current Lime Asset Management incident," adding, "To maintain operational independence by excluding management intervention from sellers, we are not considering dispatching seller employees." However, they plan to continue performing necessary monitoring duties from the sellers' position.

Even after the establishment of the new management company, the status of sellers and custodian banks will remain unchanged. The joint response team said, "Only the management company will change after the establishment of the new management company," and emphasized, "In particular, sellers will focus on tasks to protect investors, and we will continue to monitor the entire fund transfer process under the principle of good faith."

The joint response team plans to complete the establishment of the new management company and the fund transfer process by August. After signing the memorandum of understanding, they will form an establishment promotion team centered on major sellers, conclude the shareholders' agreement by the end of this month, and finalize the corporation establishment, management company registration, and fund transfer procedures.

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