Bo-eun leads the digital content team. She has covered foreign affairs, North Korea, tech, economy and gender issues at The Korea Times. She did a short stint at the South China Morning Post in Hong Kong, where she obtained a new perspective on news production and life. Small sources of joy for her are lounging in the sun, having a good latte and swimming.
New entity to be launched in July to take over Lime's funds
Lime Asset Management's office on Yeouido / Korea Times file
By Kim Bo-eun
By Kim Bo-eun
An asset managing entity will be set up by the end of next month to take over the funds of the virtually defunct Lime Asset Management, the Financial Supervisory Service (FSS) said Wednesday.
The entity will be tasked with making payments to investors of Lime's funds as the hedge fund was determined to be unable to pay back investors due to mismanagement of funds. A wide range of irregularities were found in the company's management of investments.
Authorities said the decision to set up the entity was made to ensure investors are able to redeem their investments as quickly as possible.
Twenty distributors of Lime's funds including banks and brokerages have pooled 5 billion won to set up the entity. Authorities advised the firms to take part in handling the fallout of the Lime incident as they are suspected to be responsible for mis-selling Lime's funds.
Because Shinhan Financial Group's brokerage and bank units sold the largest amount of Lime's funds, it has become the largest shareholder of the entity.
Lime's distributors setting up the entity plan to complete the takeover of Lime's funds by the end of August.
The FSS said Lime faces heavy sanctions, citing the extent of its irregularities. The sanctions against the investment firm and its executives have yet to be finalized.
"We have determined that the sanctions are also important but measures to protect investors need to be taken first, so the procedures to take over funds and finalize sanctions will take place simultaneously," an FSS official said.
The official said sanctions may be finalized by the end of August.
The supervisory agency said it has inspected the brokerages that sold Lime's funds over allegations of mis-selling and will investigate banks on the same allegations beginning June 15.
The FSS said it will impose sanctions on Lime's distributors according to the findings of the inspections.