Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Hana Bank ordered to compensate up to 80 percent of losses from controversial fund
Civic activists hold a protest against Hana Bank's disputed sales of Italian Health Care Fund in front of the Financial Supervisory Service in Yeouido, Seoul, Monday. Yonhap
By Yi Whan-woo
By Yi Whan-woo
The Financial Supervisory Service (FSS) has ordered Hana Bank to compensate up to 80 percent of the losses inflicted on customers over a fund scandal amounting to hundreds of billions of won, Monday.
It was the first FSS decision on pending financial disputes after former prosecutor Lee Bok-hyun took office as FSS governor last week.
Being the first ex-prosecutor to lead Korea's market watchdog, Lee draws mixed views on whether he can capitalize on his experience in investigations involving financial fraud and whether he lacks understanding of financial regulatory policies.
The FSS asked Hana Bank to compensate 80 percent and 75 percent, respectively, for the losses of the two customers who filed a complaint over the Italian Health Care Fund sold by the lender from October 2017 to September 2019.
The two customers, whose identities were not disclosed for privacy, were among 444 individuals and 26 firms that bought into the controversial fund.
The sale amount was worth 150 billion won ($116.6 million). Hana Bank is accused of both inadequately explaining the risks of the product and suspending repayment to investors since 2020 after originally delaying it from the end of 2019.
The FSS said it will take further action to aid the rest of the investors.
Hana Bank apologized, Monday, saying, “We will act in accordance with the FSS decision and make compensation in a prompt manner.”
It added it will take follow-up measures to “restore customer trust.”