Optimus Fund Transfer... Emphasis on Establishing a Bridge Management Company

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[Asia Economy Reporter Park Jihwan] The possibility of establishing a 'bridge management company' (bad bank) as a transfer plan for the Optimus Asset Management fund, which faced a redemption suspension crisis involving private equity funds worth around 500 billion KRW, is increasing.

On the 9th, according to financial authorities and the financial investment industry, the Financial Supervisory Service, selling securities firms, administrative management companies, custodians, and accounting firms discussed the transfer and recovery plans for the Optimus fund through three rounds of recent consultative meetings.

The Financial Supervisory Service has maintained that transferring to NH Investment & Securities is the most reasonable plan. However, as NH Investment & Securities consistently opposed this during the consultative discussions, the plan to establish a bridge management company jointly participated in by selling firms has emerged as an alternative.

NH Investment & Securities is reportedly arguing that they themselves are victims of the Optimus fraud crime, and that 'multi-party responsibility' issues have arisen involving Hana Bank as the custodian and the Korea Securities Depository as the administrative management company. With NH Investment & Securities, the largest selling firm, expressing reluctance to transfer the fund, it is highly unlikely that other securities firms with much smaller fund sales will take on the responsibility for transferring and recovering the fund assets.

The Optimus fund sales amount to 432.7 billion KRW at NH Investment & Securities, the largest share, accounting for 84% of the total redemption suspension amount. Following are Hi Investment & Securities (32.5 billion KRW), Korea Investment & Securities (28.7 billion KRW), and Cape Investment & Securities (14.8 billion KRW).

In future consultative discussions, specific talks regarding the establishment of the bridge management company are expected. The decision on the entity to receive the Optimus fund assets must precede so that asset recovery and sanction procedures such as the cancellation of registration for Optimus Asset Management can be fully initiated.

Previously, in the case of Lime Asset Management funds, the funds were transferred to 'Wellbridge Asset Management,' a bridge management company jointly established by Lime fund selling firms.

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