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 —…
The Financial Services Commission (FSC) of South Korea has imposed a total of 370 billion won ($276 million) in penalties on seven banks and six securities firms for mis-selling equity-linked securities (ELS) products linked to Hong Kong's H Index. This penalty represents a significant reduction from the initial 1.4 trillion-won fine that five lenders faced, which included KB Kookmin Bank, Shinhan Bank, Hana Bank, NH Nonghyup, and SC Korea. These banks had already compensated their customers for the mishap.
The regulatory decision came after the Financial Supervisory Service (FSS) conducted a further review of legal issues. Initially, the FSS had proposed a penalty of 600 billion won on the banks. The final penalty imposed on these financial institutions is 361 billion won.
In the period from 2021 to the present, these banks and brokerages collectively sold 19.3 trillion won worth of ELS products that tracked Hong Kong's H Index, as per data provided by the watchdog. KB Kookmin Bank was the largest seller of HK-tied ELS products, with an undisclosed amount.
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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