Victims of Italy Healthcare Fund "Financial Firms Concealed Risks"

[Asia Economy Reporter Donghoon Jeong] On the 30th, representatives of civic groups who filed complaints against Hana Bank, the fund distributor, asset management companies, and securities firms regarding the large-scale suspension of redemptions of the 'Italy Healthcare Fund' appeared at the police station.

The Citizens' Coalition for Economic Justice (CCEJ), Financial Justice Solidarity, Italy Healthcare Fund Victims' Coalition, and the National Private Equity Fraud Victims' Joint Committee urged an investigation in front of the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency, stating, "There is evidence that not only Hana Bank but also asset management companies and total return swap (TRS) securities firms were already aware of the fund's insolvency."

These organizations filed a complaint with the Seoul Metropolitan Police Agency in September this year. The accused parties include the distributor Hana Bank, seven asset management companies, and three TRS securities firms.

CCEJ and others said, "Distributors deceived investors by suggesting a guaranteed return of at least 5-6%, but considering that TRS securities firms raised the original collateral maintenance ratio from 30% to 100% to maintain margin, it is suspected that related parties were already aware of the risks."

According to the groups, the Italy Healthcare Fund is a fund of funds product that invested in medical fee accounts receivable claimed by Italian hospitals to local governments between 2017 and 2019, with approximately 150 billion KRW sold domestically. Since the end of 2019, repayment delays and early repayment failures have occurred, and the damage identified so far is reported to exceed 110 billion KRW.

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