'Lime Asset Management, Which Halted Redemption of Over 1 Trillion Won, Ultimately Bankrupt'

[Asia Economy Reporter Kim Daehyun] The court has declared Lime Asset Management, which caused a fund redemption suspension scandal involving approximately 1.6 trillion won, bankrupt.

According to the legal community on the 17th, the Seoul Rehabilitation Court, Rehabilitation Division 15 (Chief Judge Jeon Daegyu) declared Lime Asset Management bankrupt on that day. This is interpreted as due to Lime Asset Management's excessive debt, making repayment practically impossible.

The bankruptcy trustee will be the Korea Deposit Insurance Corporation, which will also hold the authority for asset management and disposition. Creditors can file claims with the Seoul Rehabilitation Court by April 21. The creditors' meeting will be held on May 19.

Lime Asset Management invested in five overseas trade finance funds, including the International Investment Group (IIG) fund, starting from May 2017, utilizing fund investment money and total return swap (TRS) loans from Shinhan Financial Investment. However, as the funds became insolvent, it declared a suspension of redemptions to investors in 2019, freezing investment funds totaling 1.6 trillion won.

However, former Vice President Lee Jongpil and former CEO Won Jongjun, among the management, were prosecuted for illegal activities such as concealing the fund insolvency and continuing to attract investments while selling and managing the funds. They were sentenced to prison in the first trial and are currently undergoing the second trial. Additionally, Kim Bonghyun, chairman of Star Mobility and a key figure in the case, is currently undergoing his first trial at the Seoul Southern District Court.

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