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Large Korean Hedge Fund Halts Investor Withdrawals Amid Probe

  • Lime Asset stops investor pullouts on funds worth $520 million
  • Firm couldn’t liquidate some assets as fast as it wanted: CEO
People are silhouetted as they walk past an illuminated neon sign near the Cheonggyecheon stream at night in Seoul.
Photographer: SeongJoon Cho/Bloomberg

One of South Korea’s largest hedge funds suspended withdrawals from some funds, saying the firm has been unable to liquidate assets fast enough to meet demands from investors for their money back.

Lime Asset Management Co., which runs $4 billion of assets, froze funds worth 620 billion won ($520 million), Won Jong-Jun, chief executive officer at the Seoul-based firm, said by phone. The suspensions affect funds that invest in assets that lack liquidity, not those buying publicly-listed stocks or bonds, Won said.