Rhyme Fund Victims' Group Rejects 80% Compensation Proposal from Dispute Mediation Committee... Heading to Court

[Asia Economy Reporter Park Jihwan] The victims' group of the Lime Fund at Daishin Securities has rejected the compensation proposal recommended by the Financial Supervisory Service's Dispute Mediation Committee (DMC) and is ultimately moving into litigation.

On the 23rd, Jung Gujip, the representative of the Daishin Securities Lime Fund Countermeasure Committee, stated, "We plan to file a complaint with the Seoul Southern District Prosecutors' Office against Daishin Securities' management by the 25th at the latest." Regarding the private banker (PB) at Banpo WM Center who led the fund sales, criminal complaints have been filed since last week on charges of 'fraud' under criminal law and 'fraudulent unfair trading' under the Capital Markets Act.

Previously, on the 28th of last month, the FSS DMC confirmed an 80% compensation ratio for investor A due to Daishin Securities' liability for damages caused by incomplete sales. The 80% compensation ratio is the highest level of damage compensation for incomplete sales of the Lime Fund, excluding the 'contract cancellation due to mistake' which compensates 100%. The compensation ratios for victims at KB Securities (60%), Woori, Shinhan, and Hana Banks (55%), and Industrial and Busan Banks (50%) ranged from 50% to 60%.

On the 9th, Daishin Securities held a board meeting and decided to accept the DMC's dispute mediation proposal recommending up to 80% compensation. Daishin Securities stated, "Despite the high compensation ratio, we decided to accept it to quickly restore trust and minimize customer damages."

The FSS dispute mediation is established if the applicant and the seller accept the mediation proposal within 20 days after receiving it. Investor A, who applied for dispute mediation against Daishin Securities, has not yet decided whether to accept the proposal.

Not only Daishin Securities, but recently, cases of private fund victims rejecting the FSS DMC mediation proposals have been increasing. This is because investors' expectations for compensation ratios have risen since Korea Investment & Securities announced a 100% compensation plan in June. Last month, for the first time, a victim of the Discovery Fund sold by IBK Industrial Bank rejected the DMC's recommendation of 64% compensation of the principal. Earlier this month, victims of the Lime Fund at BNK Busan Bank also did not accept the 61% compensation mediation proposal.

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