 |
Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Hana Bank has been awarded partial compensation for losses stemming from the suspension of redemptions at Lime Asset Management, a scandal involving approximately KRW 1.6 trillion in frozen funds.
The Civil Division 15 of the Seoul Southern District Court, presided over by Judge Yoon Chan-young, ruled on Wednesday partially in favor of Hana Bank in its damages lawsuit against Lime Asset Management and Shinhan Investment Corp., among others.
The court determined that Hana Bank holds bankruptcy claims totaling approximately KRW 38.9 billion and ordered the defendants to pay about KRW 36.4 billion in compensation to the bank.
Hana Bank filed the lawsuit in January 2022, claiming it had suffered losses from the sale of Lime funds. The damages sought amounted to roughly KRW 36.4 billion.
The Lime scandal erupted in 2019 after allegations surfaced that Lime Asset Management had improperly managed fund returns through questionable transactions involving convertible bonds issued by KOSDAQ-listed companies. As asset values plunged, the funds were forced to suspend redemptions, triggering one of South Korea’s largest fund scandals with total suspended redemptions reaching approximately KRW 1.6 trillion.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
