‘Former Supreme Court Justice Kwon Soon-il’s father-in-law lost a lawsuit against a financial company demanding the return of 1 billion won invested in the ‘Hong Kong Gentrified Fund,’ where a redemption suspension incident occurred. The Seoul High Court’s Civil Division 16 (Presiding Judge Kim In-gyeom) ruled against the plaintiff, as in the first trial, on August 8.
An Kyung-sang, the former Chief of the Board of Audit and Inspection and the father-in-law of former Justice Kwon, filed a lawsuit against Hana Bank and Samsung Hedge Asset Management for unjust profit in partnership. Kwon and his wife, who are An’s relatives, were introduced to the ‘Special Investment Type Asset Management Trust No. 3’ fund by the Samsung Hedge Asset Management, which guaranteed an expected return of around 3.3% annually on a 10 billion won investment made at Hana Bank in April 2019. Former Justice Kwon then invested his father-in-law’s retirement fund of 1 billion won in this fund.
The fund, known as the ‘Gentrified Fund,’ suspended redemptions due to COVID-19 in 2020, resulting in losses of 1 trillion won. The investment destination, Hong Kong-based fund operator Gentrup Partners, declared a redemption halt in May 2020, leaving former Justice Kwon’s father-in-law unable to retrieve the investment.
In the previous trial, the court stated, “It appears that former Justice Kwon had substantial decision-making power regarding the fund and would have enough legal knowledge to recognize the risks of investing in the fund,” showing leniency towards the bank’s actions. Despite the bank staff’s explanation of the fund being accompanied by Kwon Soon-il at that time, the court deemed, “Even if there were deficiencies in the staff’s explanation, the specific investment targets and risks of the fund are uncertain factors, and the risks potentially arising from them should be borne by the investor, the plaintiff.”