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[Alpha Biz=(Chicago) Reporter Paul Lee] SK Securities entered a tense mode ahead of next week's inspection by the Financial Supervisory Service.
For each representative of SK Securities, Kim Shin, who is considered the longest CEO in the securities industry, the inspection of the FSS is a considerable burden.
Currently, the Financial Supervisory Service is conducting intensive checks on the business status of securities firms' labs and trusts. The on-site inspection, which began with Hana Securities in May, has expanded its scope to KB Securities, Kyobo Securities, Korea Investment & Securities, Eugene Investment & Securities and SK Securities.
The securities firms in question are suspected of blocking bonds through mismatching in which customers incorporate and operate funds attracted to wraps and trusts to manage short-term extra funds into long-term CPs with low trading volume.
Earlier, SK Securities invested and operated customer funds that flowed into short-term products such as Money Market Lab (MMW) and bond-type trusts in long-term bonds, but losses occurred. In response, SK Securities has paid a settlement to corporations and individual investors who joined its bond-type trust last month for losses in valuation of investment assets and postponement of redemption. The settlement amount is equivalent to the valuation loss generated from trust assets, totaling 10 billion won.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
