[단독]Korea Investment & Securities compensates 30% of losses to private equity fund investors

[이데일리 박종오 기자] The securities company that sold the private equity fund of Pop Funding decided to ask the fund investor for 30% of the investment loss.

Popfunding is a financial company that the government once praised as’financial innovation’. However, it closed last year due to suspicion of Ponzi fraud (multi-level financial fraud). (This magazine dated February 12, 2020 ‘[단독]P2P loan scams.

According to the industry on the 15th, Korea Investment & Securities recently sent a notice about this to pop funding private equity investors. Hantu opened the Financial Consumer Protection Committee and confirmed the investor compensation plan.

The pop funding private equity funds sold by Hantoo are all worth 39.6 billion won (as of June last year). Of this, 96% (37.9 billion won) was sold to individual investors.

According to this, Hantoo decided to pay 30% of the expected loss to all POP funding private equity investors. Compensation targets are Pop Funding-related funds established and sold by Jarvis Asset Management (Jarvis No. 5·6) and Hastings Asset Management (Hastings No. 4·5·6·7, Mezzanine No. 1).

The estimated loss of these funds was estimated to be around 70-80%. If you invested 100 million won, it means that as much as 90 million won was lost. If 30% of the loss is compensated, it is expected to be returned around 20 million won based on 100 million won.

Hantoo previously presented a compensation plan to pay 20% of the expected loss to investors of Jarvis 5 and 6 last year. Investors who received compensation in agreement with the securities firm at the time can also receive an additional 10% of the loss this time.

Hantu plans to pay additional compensation to investors when it is confirmed that the fund sales staff are incomplete through their own investigation. Fund managers Jarvis Management and Hastings Management also compensate investors separately for 3.75% and 5% of the estimated loss.

In addition, if the ratio of investor compensation determined by the Dispute Mediation Committee of the Financial Supervisory Service exceeds 30%, it will additionally compensate for the less paid money. For example, if the FSS decides to indemnify 50% of the principal loss due to the internal control responsibility of the securities company that sold the private equity fund, it will pay an additional 20%.

If the compensation ratio determined by the FSS is less than 30% of the loss, investors do not have to return the money received from Hantoo. This compensation will be paid to investors who agreed to the compensation with Hantoo from this day.

Pop funding private equity investors are waiting for the outcome of the dispute settlement filed with the FSS last year. However, due to complaints from other private equity investors such as Lime Asset Management and Optimus Asset Management, there are still no adjustment schedules.

An official from the Financial Supervisory Service said, “In order to mediate disputes, we need to find out the facts through investigations by fund managers and sellers.”

Pop Funding is an online loan brokerage (P2P) company that introduced a’real estate mortgage loan’ investment product that lends money for small and medium-sized businesses supplied to home shopping as collateral. Finance Commissioner Eun Seong-soo visited the company and evaluated it as a’financial innovation case’.

However, the FSS and prosecutors’ investigations revealed that they had tried to return tens of billions of won in investment with a false loan product, and the CEO and executives were charged with fraud in July last year, and the company was also closed. All investments in the pop funding private equity fund sold by six securities companies including Hantu amounted to 143.7 billion won. Currently, most of the redemptions (refunds of investment funds) have been stopped.