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.
'Optimus CEO invested in stocks using embezzled money'
Optimus Asset Management's office in southern Seoul / Korea Times file
By Kim Bo-eun
By Kim Bo-eun
The Financial Supervisory Service (FSS) said Thursday that the CEO of Optimus Asset Management had embezzled money from managed funds to invest in stocks. The finding came after the regulator's in-depth audit of the investment firm that has suspended fund redemptions, and whose investors face tremendous losses.
The FSS also said it confirmed from its inspection ― conducted with the prosecution ― allegations that Optimus invested in assets that differed from stated investment proposals. The regulator added that Optimus had tried to obstruct its investigation.
“Optimus' CEO invested in stocks and derivative products with money taken from the managed funds,” an FSS official said in a briefing held at the regulator's headquarters on Yeouido, Seoul.
The money, presumed to amount to several tens of billions of won, was transferred to CEO Kim Jae-hyun's stock account through multiple channels, according to the financial regulator. Kim has been detained for questioning.
Optimus was found to have attracted investors by pledging to invest in safe assets. It had stated it would invest in receivables of state-run institutions, but 98 percent of its investments were made in unlisted firms' speculative bonds.
In an effort to obstruct the FSS audit, Optimus submitted false paperwork and hid key documents by replacing office computers.
The financial authority has designated several officials to manage Optimus' funds and other assets. All of the company's executives and employees have left or been detained.
It has also appointed 20 officials from accounting firms to inspect the investment firm's assets. Based on the inspections, Optimus funds are set to be handed to a separate entity for management.
Redemptions have been suspended for 24 funds in which 240 billion won was invested, out of 46 funds managing 515 billion won in investments.
The FSS inspection was conducted for almost a month from June 19 through July 10, after the authority determined this was necessary for Optimus and several other investment firms following the monitoring of 10 of them beginning in March.
The authority also looked into the Korea Securities Deposit over its role as an administrator, as well as Hana Bank which was responsible for managing Optimus funds according to the investment firm's directions. The FSS is currently inspecting NH Investment & Securities, which recommended Optimus funds to investors. It is suspected to have engaged in mis-selling, by assuring investors that their investments would be safe.
Meanwhile, 69 dispute settlement cases have been filed with the FSS over the Optimus funds.
The FSS has yet to review punitive measures.