shareholder may directly request the asset manager to redeem the shares.
If the asset manager, to whom the redemption request is made by the shareholder, the distributor or the Authorized Participant pursuant to Paragraphs
through (C) above, is unable to respond to such request due to Business Wind-Up, the shareholder, the distributor or the Authorized Participant, as the case may be, may directly request the trustee to effect such redemption.
The asset manager or the trustee who is asked to redeem the shares pursuant to Paragraphs (A) through (D) must redeem the shares at the business office of the distributor or the Authorized Participant on the third business day from the day the redemption request is made according to the Portfolio Deposit File announced by the asset manager on the redemption request date. In the event of a difference between the value of the Portfolio Deposit File based on the closing price on the redemption request date, as announced by the asset manager on the same date, and the net asset value per Creation Unit calculated after management of Fund assets on the redemption request date, the asset manager must settle such difference at the time of redemption.
Change of Payment Method for Redemption Proceeds
Notwithstanding Paragraph (E), in the case of the following, the asset manager may, according to its determination, pay the redemption proceeds in a form other than as prescribed above:
¾ If the assets of the Fund are comprised of assets that are difficult to deliver as securities, the asset manager or the trustee may convert such assets into cash for redemption purposes.
If the Fund has not enough cash for redemption, the asset manager or the trustee may deliver investment securities in lieu of cash.
F. The asset manager or the trustee must redeem the shares with securities resulting from partial termination of the Fund.
Payment of Redemption Proceeds to Foreign Corporate Shareholder
Notwithstanding Paragraph (E), if the shareholder is a non-resident foreign corporation and the redemption proceeds include assets which non-resident foreign corporations are restricted from acquiring and stocks in excess of the acquisition limit for foreigners, the Authorized Participant must sell and convert such assets into cash according to the
following procedures, so that the acquisition limit is complied with. shareholder bears the costs for conversion into cash.
In such case, the
¾ The Authorized Participant induces the shareholder to sell the portion of shares exceeding the limit within a certain period of time agreed between the Authorized Participant and the shareholder from the close of the Korea Exchange market on the date of receipt of the redeemed assets; and
If the shareholder does not sell the stocks, the Authorized Participant sells such stocks
and pays the proceeds to the shareholder in cash.
In this case, the shareholder and
the Authorized Participant shall be allowing the Authorized Participant to
deemed sell such