Finance

FSS cuts penalties on banks over Hong Kong H-index ELS to 600 billion won

South Korea\'s Financial Supervisory Service cut proposed penalties on five banks that sold equity-linked securities tied to the Hong Kong H-index to about 600 billion won. The decision was made at an extraordinary sanctions review meeting and will be finalized after a resolution by the Financial Services Commission. The revised amount is more than half below the 1.4 trillion won sanctions plan previously submitted to the FSC.

Finance

Credit loans post biggest rise in about five years as rate hikes add to borrowers\' burden

South Korean credit loans rose by the most in about five years in May, led by increases in overdraft-style minus-account borrowing, as higher lending rates raise concerns over the interest burden for borrowers investing with debt. Market expectations of a policy rate hike have grown after Bank of Korea Governor Shin Hyun-song publicly cited the need to raise rates at an appropriate time. Bank bond yields that influence loan pricing have climbed, pushing credit loan rates above 6 percent.