Woori and Hana Bank, After Trials and Tribulations, Agree to 100% Compensation for Lime Trade Finance Fund

Decision to Accept by the Board After About Two Months
Considering Consumer Protection and Management Stability

[Asia Economy Reporter Kim Hyo-jin] Woori Bank and Hana Bank have accepted the Financial Supervisory Service's dispute mediation proposal for full compensation of the principal invested in the 'Lime Trade Finance Fund.'

According to the banking sector on the 27th, the two banks held board meetings on the same day and resolved to adopt this policy.

A Woori Bank official explained, "At the board meeting last July, the decision was postponed once to conduct a thorough legal review," adding, "We reaffirmed that this case is a significant matter for consumer protection, trust restoration, and financial market stability, and made this decision accordingly."

It is known that Woori Bank's board also judged that it is necessary to minimize managerial uncertainties amid expectations that the domestic and international economic recovery in the second half of the year will be slow due to the recent resurgence of COVID-19.

A Hana Bank official said, "Despite ongoing legal procedures such as prosecution investigations and criminal trials related to this fund, we decided to accept the Financial Supervisory Service's dispute mediation committee proposal considering the need for prompt investor protection measures for customers."

Following this decision, the two banks plan to proceed with the investment refund process as quickly as possible.

Full Compensation of Investment Principal, First Case of Dispute Mediation for Financial Investment Products

The Financial Supervisory Service's Dispute Mediation Committee passed a mediation proposal in June applying 'contract cancellation due to mistake,' ordering sellers to refund the entire principal to investors of Lime Asset Management's Trade Finance Fund.

This is the first time in history that a '100% principal compensation plan' has been issued in dispute mediation involving financial investment products.

The Financial Supervisory Service initially set a deadline of the 27th of last month for acceptance, but extended the decision deadline to this day at the sellers' request for more careful review.

The sales amounts of the Lime Trade Finance Fund are 65 billion KRW for Woori Bank, 36.4 billion KRW for Hana Bank, 42.5 billion KRW for Shinhan Investment Corp., and 9.1 billion KRW for Mirae Asset Daewoo.

Meanwhile, Hana Bank also prepared additional customer protection measures for the Discovery Fund and the Italy Healthcare Fund through its board meeting on the same day.

Although losses for these funds have not been confirmed, Hana Bank explained that as a customer protection measure, it will first provide a certain level of advance payment (50% for the Discovery Fund and 70% for the Italy Healthcare Fund) and settle the final amount when the funds are liquidated in the future.

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