Yoon Seok-heon "Recent Consecutive Private Equity Fund Incidents... Heavy Sense of Responsibility"

[Image source=Yonhap News]

[Asia Economy Reporter Ji-hwan Park] Yoon Seok-heon, Governor of the Financial Supervisory Service (FSS), stated on the 29th regarding the recent consecutive suspension of redemptions in private equity funds, "As the head of the FSS responsible for supervision and inspection, I feel a heavy sense of responsibility."

On the same day, during the National Assembly's Legislation and Judiciary Committee full meeting business report, Governor Yoon emphasized, "The private equity fund incident occurred due to illegal activities by some private fund managers and the failure of autonomous market surveillance functions," adding, "Starting in August, we will conduct a comprehensive inspection of all private equity funds and management companies to identify funds that may cause investor damage early and devise countermeasures."

The FSS is currently pursuing a plan to transfer the Optimus Fund to a management company affiliated with the distributor. Once the asset audit is completed, the transfer of the Optimus Fund to the distributor-affiliated management company will proceed through processes such as net asset value adjustment.

To preserve bonds, during the on-site inspection of Optimus Management, the FSS, in cooperation with the distributor, has applied for provisional seizure on 118 items including stocks and related equity securities and bonds of investee companies. The FSS plans to handle dispute mediation based on legal review results considering asset audits, redemption progress, and inspection outcomes.

Starting next month, a comprehensive inspection of about 10,000 private equity funds will also commence. Governor Yoon stated, "We will strictly take measures such as sanctions against illegal and unfair acts by financial companies while striving to ensure swift and fair relief for victims."

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