Optimus Redemption Suspension: Another 30 Billion Won 'Bomb' Likely to Explode Again

Funds Maturing One After Another This Week

Including Private Bonds Issued by Loan Companies

[Asia Economy Reporter Ko Hyung-kwang] Optimus Asset Management halted redemptions of private funds worth approximately 38 billion KRW last week, and this week, other funds exceeding 30 billion KRW are also reaching maturity, suggesting that the scale of redemption suspensions will increase further. Moreover, it has been revealed that assets other than those originally intended for investment were included in the portfolio, raising concerns that more funds will consecutively suspend redemptions in the future.

According to the financial investment industry on the 22nd, the Trust Specialized Investment Type No. 4 and Optimus Creator No. 27 and 28 managed by Optimus Asset Management will mature on the 23rd and 26th, respectively. These funds were established on December 23 and 26 of last year, respectively, and are estimated to have a six-month maturity period, similar to other funds whose redemptions were previously suspended. Each of these three funds is known to be worth over 10 billion KRW, with a total exceeding 30 billion KRW. Considering that Optimus requested an extension of maturity for Optimus Creator No. 25 and 26 one day before their maturity on the 17th, it is uncertain whether redemptions will be possible for these funds this week.

If redemptions are suspended again this week, the total amount is expected to exceed 70 billion KRW. Last week, redemptions worth 21.7 billion KRW for Optimus Creator No. 25 and 26 and 16.7 billion KRW for Optimus Hermes No. 1 were postponed. The total fund size managed by Optimus Asset Management is about 550 billion KRW based on the balance of subscriptions, and it is expected that other funds reaching maturity will inevitably face redemption suspensions one after another. It is reported that Optimus Creator has been sold up to No. 60.

The situation worsens as it has been revealed that, contrary to the initial fund statements provided by Optimus, bonds other than public institution accounts receivable were included, raising suspicions of asset inclusion forgery. The Optimus Creator No. 25 and 26 funds, which requested maturity repayment on the 17th, were found to have included private bonds issued by a loan company as part of their assets from the beginning. This structure is completely different from the asset management company's explanation that "over 95% of the included assets are public institution accounts receivable."

NH Investment & Securities, the fund distributor, as well as Hana Bank, the custodian bank, and Korea Securities Depository, the administrative agent, all claim to have been deceived by the asset manager. A representative from the distributor said, "We verified each included fund asset statement and accounts receivable with the names of public institutions responsible for settlement, and during the asset manager’s due diligence, we received transfer notification confirmations for all investment cases, confirming no abnormalities in the sales source or transfer amounts."

The Trust Specialized Investment Type No. 4 and Optimus Creator No. 27 and 28, which mature this week, are also mostly sold by NH Investment & Securities. Since June last year, NH Investment & Securities has sold Optimus products worth about 630 billion KRW. Of this, about 200 billion KRW has been repaid normally, and 21.7 billion KRW has been notified of redemption postponement. The amount not yet matured reaches 410 billion KRW.

Considering the similar product structure, there is a high possibility that subsequent funds with remaining maturities will also suspend redemptions one after another, raising concerns about investor losses. A representative from an asset management company said, "As with the Lime Fund redemption suspension incident, if similar funds consecutively suspend redemptions, it could lead to a chain reaction of redemption suspensions. In such a case, the demand for redemptions from other fund subscribers could sharply increase, making it difficult for the company to respond."

While Optimus has yet to make any significant statements, fund distributors are seeking joint responses. The Financial Supervisory Service sent inspection personnel to Optimus’s office in Samseong-dong, Gangnam-gu, Seoul, on the 19th and has begun an investigation, with results expected as early as next week.

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