Oha Asset Management's 'Oha Savings Bank PF Normalization Support Private Investment Trust No. 1' fund, established in June 2024, has been fully liquidated this month, according to industry sources on the 28th. The fund, valued at 214 billion won, was primarily funded by Sangsangin Savings Bank and Sangsangin Plus Savings Bank. The liquidation follows regulatory scrutiny over allegations that the fund engaged in 'parking transactions' by selectively acquiring distressed project financing (PF) loans from affiliated savings banks, potentially concealing delinquency rates and defending short-term performance. The Financial Supervisory Service had launched detailed inspections into savings banks creating proprietary funds to defer recognition of bad assets, prompting the fund manager and investors to expedite asset disposal and loan recovery.
Oha Asset Management Liquidates 214 Billion Won PF Fund
The 'Oha Savings Bank PF Normalization Support Private Investment Trust No. 1' fund was established in June 2024 with 214 billion won in capital, primarily contributed by Sangsangin Savings Bank and Sangsangin Plus Savings Bank. Unlike typical normalization funds that purchase distressed assets broadly across the industry, this fund selectively acquired distressed PF loan assets held by Sangsangin-affiliated savings banks, including a bridge loan project in Jamwon-dong. The fund has been fully liquidated this month.
Financial Supervisory Service Inspects Parking Transaction Allegations
The fund faced allegations of 'parking transactions,' where savings banks transferred distressed PF assets to a proprietary private equity fund to conceal delinquency rates and protect short-term performance metrics. This practice was flagged as a potential violation of 'true sale' principles, where asset transfers must genuinely remove risk from the originating institution's balance sheet. In response, the Financial Supervisory Service conducted detailed inspections of savings banks creating proprietary funds to defer bad asset recognition. Industry observers attribute the fund's rapid liquidation to pressure from regulatory scrutiny, with the asset manager and investors accelerating project site disposals, loan recoveries, and refinancing arrangements.
PF Normalization Fund Industry Undergoes Restructuring
Industry participants note that funds with structural controversies, such as the Oha Asset Management product, are being swiftly liquidated, while capital is being redirected toward institutional normalization funds with broader participation. Korea Investment Real Asset Management's 'Korea Real Asset Savings Bank Normalization Support Fund No. 3' continues operations with 371.6 billion won in assets under management. Non-performing loan (NPL) trust funds managed by Bogo Fund Asset Management, Milestone Asset Management, and iPartners Asset Management also maintain steady returns. An industry official stated, "As of July, there are 136 PF and NPL normalization-related funds totaling 8.6 trillion won. This large-scale liquidation is expected to lead to more transparent normalization of distressed PF projects aligned with financial authorities' standards."
FAQ
What fund did Oha Asset Management liquidate this month?
Oha Asset Management liquidated the 'Oha Savings Bank PF Normalization Support Private Investment Trust No. 1' fund, which was established in June 2024 with 214 billion won in capital primarily from Sangsangin Savings Bank and Sangsangin Plus Savings Bank.
Why did the Financial Supervisory Service inspect the fund?
The Financial Supervisory Service inspected the fund over allegations of 'parking transactions,' where savings banks transferred distressed PF loans to a proprietary fund to conceal delinquency rates and protect short-term performance, potentially violating 'true sale' principles.
How large is the PF normalization fund industry?
As of July, there are 136 PF and NPL normalization-related funds totaling 8.6 trillion won, according to an industry official cited in the source.
