[2020 National Audit] "Nearly 1,400 Applications for Dispute Mediation on Substandard Private Equity Funds"

Assemblyman Yoo Eui-dong: "What Have the Financial Services Commission and Financial Supervisory Service Done?"

Status of Dispute Mediation Applications Related to Private Equity Funds (August 2019 - September 4, 2020)

[Asia Economy Reporter Park Sun-mi] It has been revealed that the number of dispute mediation cases filed with financial authorities due to redemption suspensions over the past year, including Lime Fund and Optimus Fund, is approaching 1,400.

According to data on the status of private funds for which financial dispute mediation has been requested, submitted by the Financial Supervisory Service to Yoo Ui-dong, a member of the National Assembly's Financial Services Committee from the People Power Party, the total number of financial dispute mediation requests for 31 large-scale redemption-delayed private funds received from August last year to September 4 this year is 1,393.

Looking at the number of dispute mediation cases by private fund with redemption suspensions, Lime Fund received the highest number of financial dispute applications at 734 cases. This is followed by Optimus Fund with 183 cases, Italy Health Insurance Bond Fund with 85 cases, Discovery US Fintech Global Fund with 59 cases, Jarvis Fund with 58 cases, and Gentu Fund with 40 cases.

Assemblyman Yoo Ui-dong said, "We cannot help but ask what the Financial Services Commission and the Financial Supervisory Service were doing until the large-scale private fund redemption suspension crisis, which had never been seen before, occurred over the past year," adding, "More intensive inspections are needed to ensure that additional large-scale redemption suspensions like Lime and Optimus do not occur."

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