Prosecutors Conduct Search and Seizure at Shinhan Bank Headquarters Related to Lime... Allegations of CI Fund Mis-selling

[Asia Economy Reporter Yoo Byung-don] The Criminal Division 6 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Jo Sang-won) is conducting a search and seizure of Shinhan Bank on the 1st for allegedly selling the Lime Asset Management's 'Credit Insured No. 1' (hereinafter CI Fund) to investors despite knowing it was a failing fund (charges include fraudulent unfair trading and unsound business practices).

The prosecution announced that around 10 a.m. on the same day, investigators were sent to Shinhan Bank's headquarters in Jung-gu, Seoul, to secure PC storage data and related documents concerning the CI Fund.

Earlier, the prosecution had collected related evidence through search and seizure operations targeting Lime, Shinhan Financial Group, Woori Bank, Daishin Securities, and other asset management and sales companies.

On the 15th of last month, 23 investors who suffered losses from investing in the Lime CI Fund through Shinhan Bank filed an additional complaint with the Seoul Southern District Prosecutors' Office against Lime, Shinhan Financial Investment, and Shinhan Bank on charges including fraud and violations of the Capital Markets Act. They claimed that even after the prosecution began investigating the Lime incident, the sale of the fund was systematically encouraged, and its scale was split to evade regulations under the Capital Markets Act.

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