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Daeshin Securities headquarters in Jung-gu, Seoul. (Photo=Yonhap News) |
[Alpha Biz= Reporter Kim Sangjin] Victims of the Lime Asset Management private fund redemption suspension have lost a lawsuit against Daishin Securities. The investors had sought cancellation of their fund contracts and repayment of their investments with interest, but their claims were not upheld.
On the 25th, the Seoul Central District Court's Civil Division 21, presided over by Judge Kim Ji-hye, ruled against the plaintiffs in the unjust enrichment return lawsuit (Case No. 2022GAH542139), filed by six individual investors against Daishin Securities.
Judge Kim dismissed the claims for restitution of the original state of the fund contracts and rejected the remaining claims against the defendant.
The plaintiffs sought the cancellation of their fund purchase contracts and compensation with interest, which was not acknowledged by the court.
Jang Mo, the head of Daishin Securities' Banpo WM Center, sold Lime funds worth approximately 248 billion won to 470 investors from 2017 to 2019. The Financial Supervisory Service's dispute resolution committee had previously set the compensation ratio for these Lime funds at the maximum level of 80%. Daishin Securities paid compensation up to this 80% limit. However, 35 investors dissatisfied with the 80% compensation ratio filed a lawsuit in July 2022, seeking contract cancellation and interest payments.
In a related case in February, the Supreme Court dismissed the appeal of four investors, including broadcaster Kim Han-seok, against Daishin Securities regarding unjust enrichment. The appellate court had previously ruled that Daishin Securities should only pay 80% of the investment amount and that investors should bear 20% of the litigation costs.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
