Fund Management Investigation
The Financial Supervisory Service announced on Nov. 21 that it launched an investigation into the current state of securities companies’ and asset management firms’ entrusted national pension fund management.
The agency is planning to look into the appropriateness of the entrusted management of three securities companies and three asset management firms. Also, it is going to check whether or not they sought profits for themselves or third parties by infringing upon the interests of investors, including the National Pension Service.
The results of the investigation are drawing much attention, with the ruling Saenuri Party planning on an investigation of state administration regarding this issue. The targets are Hyundai Securities, Samsung Securities, Woori Investment & Securities, Samsung Asset Management, Trust Asset Management, and Shinhan BNP Paribas Asset Management.
“We picked the six in view of the size of the entrusted management,” the watchdog explained. Earlier, it detected that some employees at Hyundai Securities had been engaged in misappropriation by selling corporate paper in a wrap account at below-the-market prices while handling government funds worth 30 trillion won (US$27 billion).