Jung Young-chae "Optimus Contract Cancellation Settlement, Immunity Effect for Those Responsible"

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Jung Young-chae, CEO of NH Investment & Securities, said on the 5th regarding the Optimus fund redemption suspension incident, "Contract cancellation due to mistake still leaves legal issues and effectively grants exemption from liability to all service providers who should share responsibility."

After attending a meeting of financial investment industry representatives chaired by Financial Services Commission Chairman Eun Sung-soo, Jung told reporters, "The decision of the Dispute Mediation Committee is to eliminate distortions in disputes between financial companies," emphasizing this point.

The Financial Supervisory Service will hold a subcommittee meeting in the afternoon regarding the Optimus fund redemption suspension incident. Previously, NH Investment & Securities proposed a 'multi-party compensation plan' involving Hana Bank and the Korea Securities Depository, but the Financial Supervisory Service reportedly rejected this and is expected to present a dispute mediation proposal applying 'contract cancellation due to mistake,' requiring full principal compensation.

Jung stated, "We are not refusing to compensate but asking to create a structure where disputes over different positions can be addressed," adding, "From a big-picture investor perspective, contract cancellation or multi-party joint compensation would be the same."

He further explained, "While we will respect the opinions of the financial supervisory authorities as much as possible, NH Investment & Securities is a listed company within a financial holding company, so the final decision authority lies with the board of directors, and discussions must take place there."

However, he said, "It would be much easier to persuade the board to proceed with compensation first by resolving it as multi-party compensation," adding, "Our legal interpretation of the contract cancellation recommendation is that it is unreasonable. If I do not accept contract cancellation due to mistake, customers will file lawsuits."

Meanwhile, Jung predicted that the recovery rate of the Optimus fund would reach the 20% range, higher than the initial due diligence results (7.8?15.2%).

He said, "Task force employees are searching for Optimus fund assets," and added, "The recoverable assets are in the 100 billion KRW range, and the recovery rate is expected to exceed 20%."

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