Eun Sung-soo: "Investigation of Private Equity Firms... No Large-scale Insolvency Like Lime Incident"

Eun Sung-soo, Chairman of the Financial Services Commission, attends the full meeting of the Political Affairs Committee held at the National Assembly on the 27th, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Park Jihwan] Eun Sung-soo, Chairman of the Financial Services Commission, stated on the 14th that no large-scale insolvency incidents like Lime Asset Management have been identified in the ongoing fact-finding investigation of private equity fund managers.

Chairman Eun made this remark during an online (non-face-to-face) year-end meeting with the press corps. Since August, financial authorities have been conducting a full survey of about 10,000 private equity funds and 234 management companies.

Chairman Eun said, "the full survey of private equity funds is about 40% complete as of the 4th of this month and is expected to be finished by the first quarter of next year," adding "When we announced in August, we expected to complete it by the second half of this year at the earliest, or by the end of this year at the latest, but as we proceeded, there were many things to check, so it has been delayed." However, he emphasized, "Speed is not everything; accuracy is important, so we are working closely with the industry."

Chairman Eun also mentioned that in the inspection of private equity fund managers, a priority selection process was conducted for high-risk and watchlist managers, and inspections of 17 companies were completed by the end of November.

He said, "Based on the inspection results, the Financial Supervisory Service will take necessary procedures against some managers suspected of wrongdoing, and a full-scale inspection will continue next year." He added that if any problems arise, they plan to respond quickly to prevent the spread of investor damage.

Furthermore, Chairman Eun stated, "No major problems have occurred in the funds during this investigation, and although some managers did not fully comply with regulations while managing funds, it has been confirmed that there are no large-scale damage cases like Lime Asset Management."

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