5 securities firms slapped with $2.1 mil. fine over mis-selling of HK-tied derivatives

Seoul's financial district in Yeouido, Dec. 24, 2025 / Yonhap

Five securities firms have been slapped a combined 3 billion won ($2.1 million) in penalties over their mis-selling of equity-linked securities (ELS) products tracking Hong Kong's H Index, the financial watchdog said Sunday.

Under the measure, KB Securities was imposed a 1.7 trillion won fine last month over violating a recording procedure and failing to notify investment risk to customers, according to a regulatory filing by the Financial Supervisory Service.

NH Investment & Securities, Mirae Asset Securities, Korea Investment & Securities and Samsung Securities were also fined over similar charges.

ELS refers to hybrid securities whose returns are linked to the performance of underlying equities, including a stock index.

In early 2024, HK-tied ELS buyers suffered massive losses as Hong Kong's H index plunged.