 |
[Apha Biz=(Chicago) Reporter Paul Lee] Following the Financial Supervisory Service's further inspection of the Industrial Bank of Korea, the largest seller of Discovery Funds, Yuanta Securities Co. and Hana and IBK Securities Co. will also conduct another inspection.
According to the financial investment industry on the 13th, the FSS will conduct an on-site inspection of Discovery Fund on Yuanta Securities, Hana Securities and IBK Securities early next week. Yuanta Securities will be investigated for the sale of Lime Fund and Discovery Fund at the same time.
The Discovery Fund is a fund run by Jang Ha-won, the younger brother of former Cheong Wa Dae policy chief Jang Ha-sung, and has been sold at three banks, including Industrial Bank of Korea, Shinhan Bank and Hana Bank, and nine securities firms including Yuanta Securities and IBK Investment & Securities since 2017. Although it attracted a large number of investors by promoting it as a safe product to invest in U.S. bonds, the local operator's accounting fraud was revealed and the company was put under court receivership, resulting in the suspension of redemption of 256 billion won in 2019.
A reinvestigation by the FSS found that the Discovery Fund tried to turn into funds invested in other overseas SPCs after it became difficult to repay three funds nearing maturity due to a lack of funds from overseas special purpose firms (SPC) in 2019. In the process, the fund investment proposal created for return did not include this fact and falsely stated the target of the investment. If the seller sold the fund even though it was aware of this problem, it could be an incomplete sale. The Financial Supervisory Service will focus on whether the actual vendors knew about it.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
