Korea Looking Into H.K. Hedge Fund That Halted Some Withdrawals

South Korea’s financial regulators are looking into a Hong Kong-based hedge fund that has halted withdrawals from some of its funds by Korean investors, according to people familiar with the matter.

The Financial Supervisory Service is reviewing the suspension of client redemptions totaling at least 647 billion won ($536 million) by Gen2 Partners Ltd., founded by Kyle Shin, the people said. The frozen funds are part of Gen2’s KS Asia Absolute Return Fund, KS Korea Credit Fund and CM Credit Fund, according to the people, who are not authorized to speak publicly on the matter.

Several distributors of the ...