Regulator finalizes $276 mil. penalties on banks, securities firms over mis-selling of HK-tied derivatives
Seven banks and six securities firms were slapped with a combined 370 billion won ($276 million) in penalties by the financial regulator Wednesday over their mis-selling of equity-linked securities (ELS) products tracking Hong Kong's H Index. The amount is a sharp cut from the initial 1.4 trillion-won fine on the five lenders — KB Kookmin Bank, Shinhan Bank, Hana Bank, NH Nonghyup and SC Korea —…
South Korean financial regulators have imposed a total of 370 billion won, or $276 million, in penalties on seven banks and six securities firms for mis-selling equity-linked securities (ELS) products tied to Hong Kong's H Index. This penalty amount is significantly lower than the initial 1.4 trillion-won fine proposed for five lenders, including KB Kookmin Bank, Shinhan Bank, Hana Bank, NH Nonghyup, and SC Korea.
These banks had already compensated customers for the mis-selling, as reported by the Financial Services Commission (FSC). The financial regulator, after directing the Financial Supervisory Service (FSS) to further examine certain legal aspects, ultimately decided on the 370 billion won penalty. Earlier, the FSS had suggested a penalty of 600 billion won.
According to previous FSS data, the seven banks and brokerages collectively sold 19.3 trillion won worth of ELS products tracking Hong Kong's H Index since 2021. KB Kookmin Bank was the largest seller of HK-tied ELS products, as stated earlier in the report.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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