Korea to Review Freeze on Notes Tied to Singapore Firms
- FSS looking into securities tied to Singapore trading firms
- At least 100 billion won of notes were halted from redemption
Financial regulators in South Korea are reviewing why investors in some structured notes are being prevented from withdrawing their money, according to a person familiar with the matter.
The Financial Supervisory Service is looking into at least 278.9 billion won ($234 million) of such securities bought by South Korean individuals and companies that are linked to account receivables of certain Singapore-based trading companies, said the person, who asked not to be identified because they aren’t authorized to speak publicly on the issue. The underlying assets were managed by TransAsia Private Capital Ltd., a Hong Kong-based alternative asset management firm, and at least 100 billion won has been halted from redemptions thus far, the person said.