South Korea's Securities Firms Recover Initial Fund from New Hedge Funds as Losses Hit 10-15% in July

According to the financial investment industry on July 22, major South Korean securities companies have been redeeming their initial seed capital invested in newly established domestic equity funds after losses reached internal thresholds of 10-15%. The redemptions primarily affected funds launched in May and June by firms including VIP, NH Hedge, Double U, and Quad Asset Management. The KOSPI index, which peaked near 9,000 in June, subsequently declined sharply, causing newly established funds to hit stop-loss triggers faster than older funds that had accumulated gains. A single redemption involving both securities capital and retail client withdrawals reportedly reached 35 billion Korean won. Industry observers noted this scale, while notable, is unlikely to trigger immediate fund liquidation or operation suspension.
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