[2020 National Audit] President of Nong-eochon Corporation: "Trusted Securities Firm's Explanation on Optimus Investment... No Safety Assessment Criteria"

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyun-jung] Kim In-sik, president of the Korea Rural Community Corporation, stated regarding the Optimus fund investment, "We invested trusting the presented product and the financial investment company (NH Investment & Securities)," and added that there were no separate internal criteria to assess investment risks.

On the morning of the 12th, Kim attended the Agriculture, Forestry, Livestock, Food, and Maritime Affairs Committee meeting at the National Assembly in Yeouido, Seoul. When Democratic Party lawmaker Maeng Sung-kyu pointed out that "the proposal received from NH Investment & Securities during the process of investing 3 billion KRW of the company’s employee welfare fund in the Optimus fund did not provide detailed information on profitability, risk, or investment targets," Kim responded accordingly.

Kim said, "(The person in charge) received sufficient explanations and confirmations over the phone in advance and accepted the proposal at that level." When asked if there were internal judgment criteria regarding profitability, risk, and targets, he replied, "There are no internal criteria," explaining, "We trusted NH Investment & Securities and believed the product explanation promising a 2.8% return, which is why we invested." When asked how they would respond if the invested funds were not fully recovered, he answered, "We will file a lawsuit to ensure recovery."

Regarding the criticism from People Power Party lawmaker Lee Yang-su that the procedures were inadequate?pointing out that the request for proposal was sent on February 10, the proposal was received on the 11th, just one day apart, and that the investment decision was made on the same day the defective proposal was received from NH Investment & Securities on the 27th of the same month?Kim said, "I apologize for the operational shortcomings."

On measures to supplement investment criteria, he said, "Currently, a separate foundation corporation has been established, and we will also improve management," adding, "We will promote improvements to ensure transparency, safety, and continuously strengthen accountability." He further stated, "(Regarding the Optimus investment) we conducted an internal audit and elevated the participation level of the responsible manager from department head to first-level deputy general manager to enhance accountability." When asked about holding those responsible for the poor investment accountable, he replied, "We will respond strictly according to laws and principles."

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