The Financial Supervisory Service on the 28th sent preliminary notices to five banks for about 2 trillion won in combined fines over alleged misselling of Hong Kong H Index equity-linked securities.
Market observers expect confirmed fines in the trillion-won range to affect banks’ capital ratios.
According to financial authorities and industry sources, the FSS issued the notices under the supervisory rules on fines in the Financial Consumer Protection Act.
KB Kookmin Bank, Shinhan Bank, Hana Bank, NH Nonghyup Bank and SC First were notified of fines and penalties. Woori Bank also sold the products but was excluded because its scale was the smallest.
The combined amount of fines and penalties is known to reach about 2 trillion won.
The act allows fines of up to 50 percent of the revenue or equivalent amounts gained from violations.
Attention has focused on whether revenue would be viewed as sales amounts or fees. The FSS is said to have calculated fines based on sales amounts.
The FSS will bring the case to a sanctions committee on December 18 to begin formal procedures.
The Financial Services Commission will confirm the final size of the fines.
[Yonhap]
Online Team
d-today@d-today.co.kr