Hana Bank, which suffered losses in the so-called "Lime scandal," will be compensated for part of them. It has been about four years since Hana Bank filed suit in Jan. 2022.
According to legal sources on the 5th, the Civil Division 15 of the Seoul Southern District Court (Presiding Judge Yoon Chan-young) ruled partly in favor of the plaintiff in a damages suit that Hana Bank filed against Lime Asset Management and Shinhan Investment & Securities.
The court found that Hana Bank holds bankruptcy claims of a little over 38.9 billion won against Lime Asset Management and ordered Shinhan Investment & Securities to pay Hana Bank a little over 32.7 billion won.
The "Lime scandal" began in 2019 when allegations surfaced that Lime Asset Management was managing revenue rates improperly by engaging in illicit transaction of convertible bonds (CB) and other instruments issued by KOSDAQ-listed companies. Stock prices in funds managed by Lime Asset Management plunged, leading to a suspension of redemptions totaling about 1.6 trillion won.
After the suspension of redemptions, Hana Bank fully compensated investors for their principal in line with the Financial Supervisory Service's recommendation and filed a damages suit to seek indemnity.