Woori, KEB Hana to compensate DLF investors
Woori Bank CEO Sohn Tae-seung By Lee Kyung-min Woori Bank and KEB Hana Bank are expected to compensate investors that are set to see losses from high-risk derivative products sold by the two banks, sources said Sunday. The products in question, derivative-linked funds (DLF), are structured to track the performance of underlying assets such as interest rates and government-issued bond yields. Their returns are determined by the movements of those assets.According to the Financial Supervisory Service (FSS), between 30 percent and 50 percent of the investment will be compensated provided that the products were indeed sold as a result of “irresponsible marketing,” a claim raised by most of the victims. They maintain they never consented to seeking profit beyond the point of losing initial investment. The FSS is outlining compensation guideline for those cancelled the DLFs before the product maturity, a measure that could help fine-tune a more complicated one for those wh
