[서울신문] DLF damage relief completed… Financial Supervisory Service “Finished in the first half of the first half of dispute settlement for five major private equity funds”

58.4% reimbursement for 2808 DLF investors
Lime Fund Relief for Damages of 1.1 Trillion Won
Plan to complete’professional investment type self-check’ in the first half of the year

The Financial Supervisory Service has completed relief from damages arising from the overseas interest rate-linked derivative-linked fund (DLF) situation. It is also planning to close the dispute settlement in the first half of the five major private equity funds including Lime and Optimus funds.

▲ Seoul Newspaper DB

According to the Financial Supervisory Service on the 21st, the amount of DLF-related losses that were controversial due to large-scale losses and incomplete sales in 2019 amounted to 4453 billion won. It was finally counted as receiving compensation.

Earlier, the Financial Supervisory Service’s Dispute Mediation Committee decided to compensate 40-80% of the damages caused by incomplete DLF sales.

The Financial Supervisory Service is also planning to close the settlement of disputes over five major private equity funds, including Lime and Optimus funds, in the first half of the year.

According to the Financial Supervisory Service, as of the end of December last year, the total amount of funds whose redemption was postponed was 6,847.9 billion won (private fund 6,642.8 billion won, public offering 197 billion won). Of these, five funds, including Lime, Optimus, Heritage, Discovery, and Healthcare Fund, accounted for a significant portion, accounting for 2.87 trillion won (42%) and 1370 disputes (77%).

The Lime Fund, which caused a total of 1.4 trillion won to stop repurchases, has been remedied for damages of about 1.1 trillion won so far. These include cancellation of the contract due to an error (161.1 billion won), compensation for damages based on post settlement (3548 billion won), partial advance payment of compensation or personal settlement (approximately 600 billion won).

The Dispute Mediation Committee will be held at the beginning of next month for the Optimus Fund worth 5209 billion won. The Financial Supervisory Service is known to recommend the full return of the principal by applying’contract cancellation due to an error’, similar to the Lime Trade Finance Fund.

The dispute settlement process will begin at the end of May for the Discovery (25.6 billion won) and Healthcare (184.9 billion won) funds, including the 5209 billion won heritage fund. If the facts are confirmed for the rest of the redemption suspension funds, the policy is to pursue a dispute settlement procedure even before the sanctions are finalized. When determining the level of sanctions, take into account financial companies’ efforts to compensate for consumer damage.

Meanwhile, the Financial Supervisory Service has inspected 28 financial companies so far regarding Samoford. Measures have been ended for eight, and sanctions are in progress for 20. In addition, it plans to complete the self-inspection of professional investment-type private equity funds, which started in August last year, by the first half of the year. Of the 9043 provisional funds, about 81.9% of the funds have been inspected so far.

The Financial Supervisory Service said, “We will continue to promptly seek relief from investors for other funds such as Optimus following the DLF and Lime Fund, which is in a probationary phase, which has completed damage relief. We will stabilize the market.”

Reporter Kim Hee-ri [email protected]