Korea Investment Management (KIM) is under direct investigation by the Seoul Metropolitan Police Agency over allegations that it exaggerated advertising by saying it would include SpaceX's initial public offering shares in its own exchange-traded fund (ETF).
On the 15th, the Seoul Metropolitan Police Agency's financial crime investigation unit said it took over from the Yeongdeungpo Police Station in Seoul and is investigating a case in which KIM was accused of fraud due to exaggerated advertising.
Earlier, an individual investor, identified as A, filed a fraud complaint against KIM at the end of last month. It was reported that investors claimed KIM promoted that, unlike other managers' ETFs, it would include SpaceX at the offering price, but in reality it did not.
This month, financial authorities also issued a warning message about asset managers' exaggerated advertising. Lee Chan-jin, governor of the Financial Supervisory Service, said at a meeting with the heads of 20 asset management companies on the 13th, "False or exaggerated advertising by managers is a very grave issue in terms of investor protection," and added, "It is very regrettable that such cases have occurred frequently at large managers that should set an example for the industry."