Prosecutors Conduct Search and Seizure at Shinhan Investment Corp. Related to Large-Scale Redemption Suspension of 'Italia Healthcare Fund'

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The prosecution conducted a search and seizure at Shinhan Financial Investment in connection with the private equity fund 'Italia Healthcare Fund,' which caused a large-scale suspension of redemptions.

On the 5th, the Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Chae Hee-man) sent prosecutors and investigators to the Shinhan Financial Investment headquarters in Yeouido, Seoul, to secure materials related to the Italia Healthcare Fund.

The Italia Healthcare Fund is a product that invests in medical fee accounts receivable billed by Italian hospitals to local governments. Approximately 150 billion KRW worth was sold from October 2017 to September 2019. However, from the end of 2019, repayment delays and early redemption failures occurred. From 2020, the Italia Healthcare Fund sales were suspended, and investor losses exceeded 110 billion KRW.

Victims of the fund redemption suspension filed complaints and accusations in July 2020 against Hana Bank, the fund distributor, for charges including fraud and violations of the Capital Markets Act. Shinhan Financial Investment, as one of the three securities firms issuing derivative-linked securities (DLS) and total return swaps (TRS), was accused alongside Hana Bank. The Seoul Southern District Prosecutors' Office began related investigations last November by conducting a search and seizure at Hana Bank headquarters.

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