Former Shinhan Investment Corp. Head: "Trade Funds Are Not OEM Funds... No Management Instructions Given"

[Asia Economy Reporter Yoo Byung-don] Regarding the 'Lime Asset Management Incident,' Im Mo, former head of Shinhan Financial Investment PBS who was sentenced to 8 years in prison in the first trial for assisting in fund sales, stated in court that "trade funds are not OEM funds."

Im Mo, former head of Shinhan Financial Investment PBS, appeared as a witness on the 16th at the trial of former Lime Vice President Lee Jong-pil and others, held at the Seoul Southern District Court Criminal Division 12 (Presiding Judge Oh Sang-yong), and argued, "Creating OEM funds is a risky act for asset management companies that could result in losing their license," adding, "Lime had no reason to take such a risk and create illegal OEM funds."

Im added, "As PBS, we only assisted Lime to promote sales and did not instruct the asset management company regarding fund operations."

Since May 2017, Lime invested in five overseas trade finance funds, including the 'International Investment Group' (IIG) fund, using fund investment money and Shinhan Financial Investment's total return swap (TRS) loan funds.

Among these, the IIG fund experienced insolvency, and although Lime was aware of this, they changed the management method to prevent the insolvency from being revealed and continued selling the fund.

Former Vice President Lee has avoided responsibility by claiming that the fund invested in the IIG fund was an OEM fund created under Shinhan Financial Investment's instructions.

Im stated that in November 2018, he was notified of the IIG insolvency via email and visited Lime and IIG directly in January 2019 to verify the facts.

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