South Korea investigates freeze on Singapore-linked notes: reports
Regulators are reviewing at least $234m of securities.
South Korea’s Financial Supervisory Service is looking into why investors in some structured notes are being stopped from withdrawing their money, reports Bloomberg.
The regulator is looking into at least $234m (KRW278.9b) of such securities bought by South Korean individuals and companies that are linked to account receivables of certain Singapore-based trading companies, a source revealed.
The underlying assets were managed by TransAsia Private Capital Ltd., a Hong Kong-based alternative asset management firm, and at least $84m (KRW100b) has been halted from redemptions so far.
Korean regulators are trying to figure out if the Singapore firms are having any difficulties with regard to repayments, after the pandemic triggered a collapse in global trades. They are also checking whether the companies bought insurance covers.
Here’s more from Bloomberg.