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[Alpha Biz=(Chicago) Reporter Kim Jisun] With losses related to the Hong Kong H Index's basic equity-linked securities (ELS) exceeding KRW 500 billion, financial authorities will begin a second round of inspections of ELS sellers this week.
According to the financial sector on the 14th, the Financial Supervisory Service will begin a second on-site inspection of major ELS vendors (five banks and six securities firms) from the 16th. Based on the problems revealed in the first inspection, categorizing and systematizing each case and applying it to each case is the main content of the second on-site inspection, and the goal is to form a "responsibility sharing standard" as early as the end of this month.
In the second inspection, the duty of explanation and suitability principle are expected to be at issue.
Based on this, the Financial Supervisory Service plans to draw up a standard for sharing responsibility by the end of this month at the latest and early next month at the latest.
Meanwhile, the loss of ELS principal continued to expand, surpassing 500 billion won (based on five major commercial banks). According to the financial sector, the principal of the Hong Kong H index-based ELS products sold by five major commercial banks (KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup) as of the 7th was 973.3 billion won, of which only 451.2 billion won was refunded. The loss was KRW 522.1 billion, with the principal loss rate reaching 53.6%.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
