KOFIA and Fund Industry "Efforts to Prevent Private Fund Recurrence... Investor Protection as Top Priority"

On the morning of the 23rd, the fund industry expressed its stance and determination at the Geumtu Center in Yeouido, Yeongdeungpo, Seoul.

Financial Investment Association / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kum Bo-ryeong] In response to the successive private equity fund scandals such as Lime and Optimus, the Korea Financial Investment Association and the fund industry have expressed their commitment to preventing future recurrences.

On the morning of the 23rd, Na Jae-cheol, chairman of the Korea Financial Investment Association, along with chairpersons of asset management companies and representatives of fund rating agencies, announced the fund industry's position and determination at the Financial Investment Center in Yeouido, Yeongdeungpo, Seoul.

First, the fund industry agreed to actively cooperate with financial authorities in improving systems to prevent recurrence of accidents. They also resolved to faithfully implement strengthening internal control and compliance monitoring functions, efforts to prevent incomplete sales, continuous self-innovation, and self-purification efforts.

The fund industry stated, "We will prevent incomplete sales by improving sales procedures and enhancing the professionalism and ethical awareness of sales personnel," and added, "We will continue relentless self-innovation and self-purification efforts to restore trust in private equity funds and the capital market." As of 11 a.m. that day, 100 asset management companies had expressed their intention to participate.

The Korea Financial Investment Association will support strengthening the fund industry's capabilities by providing education for compliance officers, distributing work manuals, and sharing best practices in internal control to create a trustworthy fund market. Educational programs will also be established to cultivate ethical awareness among fund industry employees.

Na Jae-cheol, chairman of the Korea Financial Investment Association, emphasized, "Private equity funds have actively invested in cutting-edge fields such as bio and medical, materials, parts and equipment, autonomous vehicles, and artificial intelligence, fostering innovative companies as new growth engines," and added, "No matter how long it takes, we will establish compliance management principles that prioritize investor protection as the highest value."

He continued, "Taking this opportunity, the fund industry will reflect on unreasonable business practices so far and use this as a turning point for private equity funds to be reborn, maximizing their positive functions," and appealed, "Please do not withdraw your interest and affection for private equity funds."

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