Prosecutors Conduct Surprise Search of Hana Bank, Seller of 'Italy Healthcare Fund'

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] In relation to the large-scale suspension of redemptions of the 'Italy Healthcare Fund,' the prosecution conducted a search and seizure at Hana Bank, the fund distributor. This is interpreted as the start of a full-scale investigation after 1 year and 4 months.

The Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Kim Rak-hyun) conducted a search and seizure at Hana Bank headquarters on the 4th on charges of violating the Capital Markets Act and fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, securing fund sales materials and others.

This search and seizure was carried out following complaints filed by victims of the fund redemption suspension against Hana Bank and others for fraudulent fund sales in July last year.

Investors, frustrated with the sluggish prosecution investigation, filed another complaint against Hana Bank at the Seoul Metropolitan Police Agency in September. This case was assigned to the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency but was later transferred back to the prosecution.

The Italy Healthcare Fund was sold by Hana Bank from 2017 to 2019 and is a product that invests in medical fee accounts receivable claimed by Italian hospitals to regional governments. Since the end of 2019, repayment delays and early repayment failures have occurred, and the damage amount identified so far is reported to exceed 110 billion KRW.

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