Optimus Investors' Pressure... To the Blue House, Protests, and Lawsuits

Posted on Cheongwadae National Petition Board
Protest Rally at NH Investment Headquarters and Financial Supervisory Service
Legal Actions Including Dispute Mediation and Civil Lawsuits Imminent

[Asia Economy Reporter Park Jihwan] Investors affected by the Optimus scandal, where private equity fund redemptions worth up to 500 billion KRW are feared to be suspended, are intensifying their pressure on sales companies on all fronts.

According to the financial investment industry on the 20th, a post titled "Please issue a special directive to investigate the Optimus private equity fund" was uploaded on the Blue House National Petition board on the 18th. By 10 a.m. that day, 1,028 people had agreed to the petition, lending their support.

The petitioner stated, "It was sold as a low-risk investment-grade fund investing in stable government bonds, but in reality, it was a financial fraud where the investment funds flowed to loan companies." He added, "NH Investment & Securities sold about 500 billion KRW and claimed they did not even know it was a false contract," and continued, "If department stores say they were also deceived and that the manufacturer committed fraud and went bankrupt, leaving them unresponsive, then who should customers hold accountable?"

Investors plan to increase the level of pressure on sales companies this week to demand full compensation of their investment funds. On the morning of the day, they held a protest rally at the NH Investment headquarters in Yeouido, Seoul, and the Financial Supervisory Service, then moved to the NongHyup Financial Group in Seodaemun-gu in the afternoon to continue the rally.

A rally is also planned on the 23rd, the day of NH Investment’s regular board meeting. On that day, NH Investment is expected to propose a "liquidity support plan" for Optimus investors. It is known that a plan to prepay 50% of the invested principal is being considered. Earlier, Korea Investment & Securities announced that it would prepay 70% of the invested principal.

As of the 19th of last month, the outstanding balance of Optimus fund sales to individual investors by securities companies was 432.7 billion KRW at NH Investment and 28.7 billion KRW at Korea Investment, among others. However, since investors are demanding 100% repayment, conflicts are expected. A victim in their 70s said, "I lost all 200 million KRW of my retirement funds and have been unable to sleep for nearly a month," adding, "Unless the full principal is recovered, I will put everything else aside and take related actions."

Legal action by investors is also imminent. The law firm Okims, which is handling the lawsuit, has completed all preparations and plans to file civil lawsuits against NH Investment, Hana Bank, and the Korea Securities Depository this week. Investors are also increasing pressure on sales companies by applying for dispute mediation with the Financial Supervisory Service. The number of dispute mediation applications related to the Optimus fund, which was only 27 at the beginning of this month, has recently more than doubled.

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