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[Alpha Biz=(Chicago) Reporter Kim Jisun] The redemption of renewable energy private equity funds sold by Shinhan Bank for KRW 21.5 billion has reportedly been suspended.
According to the financial sector on the 20th, Hyundai Dragon Dynamic Energy-Specialized Private Equity Investment Trust No. 1, a UK renewable energy power plant loan investment fund sold by Shinhan Bank, expired in July last year, but the redemption was suspended.
The fund was created by Hyundai Asset Management, a local asset management company. It was set up in May 2018 and sold 21.5 billion won through Shinhan Bank alone.
The fund was invested in Derivatives Linked Securities (DLS) related to down payment loans for renewable energy power plants to be built in Peterboro, England.
However, the company in charge of building the power plant failed to receive the principal and interest of the investment as the development was disrupted due to poor management. Currently, the valuation of the fund is 0 won.
Although the operating and selling companies are different, they have the same underlying assets and similar sales structure as Port Korea Management's "Green Energy No. 1∼4" fund, whose redemption was suspended in March last year.
For Port Korea Fund, KB Securities and Shinhan Investment & Securities sold KRW 48 billion in 2018∼2019, but the redemption was suspended.
The fund investors filed a complaint with the Seoul Southern District Prosecutors' Office in March this year against the seller and the operator on charges of violating the Specific Economic Crime-weighted Punishment Act (fraud).
Investors claim incomplete sales, saying that although Shinhan Bank explained that the fund is insured and the principal is guaranteed, the redemption has been suspended. Investors have filed for dispute settlement with the Financial Supervisory Service. It also plans to file a lawsuit against Shinhan Bank soon.
Sellers and management companies are trying to get their investments back as much as possible through insurance-related lawsuits. Hyundai Asset Management is preparing a lawsuit against an insurance company through an overseas lender as the local insurer refuses to pay without giving a clear reason.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
