Woori Bank, KEB Hana Bank join Lime Asset Management fund fraud lawsuits

Woori Bank and KEB Hana Bank filed 64.7 billion won and 36.4 billion won lawsuits, respectively, with the Seoul Southern District Court in January against Shinhan Investment Corp. and Lime Asset Management Co. Ltd. in connection with Lime Asset Management's fund fraud case, Yonhap News Agency reported, citing financial and legal sources.

Shinhan Investment's role in the case involves loans to Lime Asset Management under a total return swap agreement. The Seoul Bankruptcy Court approved Lime Asset Management's bankruptcy filing Feb. 17.

The Financial Supervisory Service issued refund guidance for financial institutions that sold Lime Asset Management funds to customers. Under the guidance, financial institutions should pay refunds to cover all or part of customers' invested principal.

Mirae Asset Securities Co. Ltd. had filed a similar lawsuit with the same court in April 2021, seeking 9.1 billion won in damages.

The report did not include comments from Shinhan Investment or Lime Asset Management.

As of Feb. 18, US$1 was equivalent to 1,196.90 South Korean won.