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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] SEOUL, June 5 — The Financial Supervisory Service (FSS) has decided to impose about 600 billion won ($4.5 billion) in fines on five banks over the sale of Hong Kong H-index-linked equity-linked securities (ELS), significantly reducing earlier estimates.
The penalties will be shared by major lenders including KB Kookmin Bank, Shinhan Bank, Hana Bank, NH NongHyup Bank and Standard Chartered Korea.
The latest decision cuts the fines to less than half of the previously proposed 1.4 trillion won, reflecting a reassessment of the severity of violations and consideration that many cases occurred during the early implementation of the Financial Consumer Protection Act.
Regulators had initially calculated fines of up to 4 trillion won before gradually lowering the amount through internal reviews and consultations with the Financial Services Commission.
Market observers say concerns over excessive penalties affecting banks’ lending capacity, as well as the risk of legal challenges, contributed to the significant reduction.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
