Hana Bank partially wins first-instance damages suit over 'Lime scandal'..."36.4 billion won in compensation"

[Financial News] Hana Bank, which suffered losses from the suspension of redemptions on funds worth around 1.6 trillion won managed by Lime Asset Management, will recover part of its bankruptcy claims.
On the 5th, Civil Division 15 of the Seoul Southern District Court, presided over by Judge Yoon Chan-young, delivered a ruling partially in favor of the plaintiff in a damages lawsuit that Hana Bank filed against Lime Asset Management, Shinhan Investment & Securities and others.
The court ordered, "Defendant A, former vice president of Lime Asset Management, jointly with Lime Asset Management, shall pay Hana Bank approximately 36.44 billion won, and Defendant B, former division head at Shinhan Investment & Securities, together with Shinhan Investment & Securities, shall jointly with A and Lime Asset Management pay Hana Bank approximately 32.79 billion won." The court confirmed the total bankruptcy claims at about 38.92 billion won.
Earlier, in January 2022, Hana Bank filed the damages suit, claiming it had incurred losses from selling Lime funds. The amount of damages it sought was about 36.4 billion won.
The "Lime scandal" refers to a 2019 case in which allegations emerged that Lime Asset Management had engaged in irregular transactions of convertible bonds (CB) of KOSDAQ-listed companies and improperly managed returns. As a result, the value of assets in Lime Asset Management funds plunged, triggering a redemption freeze of roughly 1.6 trillion won.
The Dispute Mediation Committee of the Financial Supervisory Service (FSS) determined that distributors of Lime funds sold after 2018 must compensate investors for the full amount of their principal. Following that decision, distributors at the time, including Woori Bank, Hana Bank and Mirae Asset Securities, reimbursed principal and then filed lawsuits.
In February last year, the court also handed down a partial victory to the plaintiffs in a lawsuit that Woori Bank and Mirae Asset Securities brought against Shinhan Investment & Securities and Lime Asset Management.
psh@fnnews.com Park Sung-hyun Reporter