Financial firms to refund consumers in Lime Asset scandal

Banks and brokerages that handled fund products by Lime Asset Management Co. in a misselling scandal agreed to return investments made by consumers, in line with the advisory issued by the country's financial regulator.

Woori Bank, Hana Bank, Shinhan Investment Corp., and Mirae Asset Daewoo Co. said their boards accepted calls by the Financial Supervisory Service's dispute settlement board beginning late 2018 to provide full refunds.

The four companies initially contested the FSS board's advice.

Some 500 individual investors and 58 corporate investors could receive over 150 billion won if the four companies satisfy the claims.

Woori was asked to pay 65 billion won, Shinhan 42.5 billion won, Hana 36.4 billion won and Mirae Asset Daewoo 9.1 billion won.

Lime Asset is accused of either falsifying or insufficiently stating fund product information.

Meanwhile, the financial institutions were blamed for providing inaccurate information about Lime without conducting thorough checks on products.

The four financial institutions intend to take action against Lime, such as pursuing indemnification and compensation for damages incurred.

Lime executives have been arrested.