National Federation of Fisheries cooperatives loses entire principal of $37 mil. in failed alternative investment
By Anna J. Park
The Financial Supervisory Service (FSS) has issued a management caution against the National Federation of Fisheries Cooperatives (NFFC) for its sloppy response to a failed overseas alternative investment worth 50 billion won ($37 million).
According to the FSS on Sunday, the fisheries cooperatives injected 50 billion won in an overseas alternative investment in March 2018, only to recognize 28.2 billion won in 2020 and 21.9 billion won in 2021 as impairment losses due to the invested party’s eventual bankruptcy. Even after the entire principal was lost, the fisheries cooperatives were found to have not taken any follow-up measures.
The FSS, the country’s financial watchdog agency, issued nine management precautions and five improvement requests to the fisheries cooperatives, demanding it strengthen alternative investment capabilities. Management precautions and improvements are measures of administrative guidance, asking financial companies to take…
