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Photo: Korea Investment & Securities |
[Alpha Biz= Kim Jisun] SEOUL, Oct. 15 — South Korea’s Financial Supervisory Service (FSS) has begun on-site inspections of financial institutions involved in selling the so-called “Belgium Fund,” which raised approximately 90 billion won (about USD 65 million) in investor capital but ended up losing the entire amount.
According to financial industry sources, the FSS on Tuesday launched inspections at Korea Investment & Securities, KB Kookmin Bank, and Woori Bank — all distributors of the fund — to investigate allegations of misselling and potential violations of investor protection rules.
Korea Investment & Securities sold the largest portion of the fund, totaling around 58.9 billion won, followed by KB Kookmin Bank with 20 billion won and Woori Bank with 12 billion won.
The investigation is seen as part of FSS Governor Lee Chan-jin’s pledge to strengthen consumer protection since taking office. Observers expect the regulator to adopt a stricter enforcement stance in the ongoing probe.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
