SEOUL– South Korea’s financial regulator said Wednesday that it has decided to take punitive action against Woori Bank for misspelling of funds run by now-defunct Lime Asset Management.

The Financial Services Commission (FSC) said Woori Bank will be suspended from selling new private equity fund products for three months.

The FSC also decided to take punitive action against Woori Financial Group Chairman Sohn Tae-seung, which could bar him from holding a job in the financial sector for up to five years.

In a major hedge fund fiasco, Lime Asset, once the nation’s biggest hedge fund, was accused of selling and running fraudulent financial products and covering up massive investment losses.

The botched investment caused investors to incur heavy losses as redemption of some 1.6 trillion won (US$1.17 billion) worth of funds was halted in 2019.

Source: Yonhap News Agency