KRW 374.632 billion in fines and penalties… sanctions on 13 institutions over H-index ELS

South Korea’s Financial Services Commission imposed a combined 374.632 billion won in fines and penalties on seven banks and six securities firms for mis-selling Hong Kong H-index equity-linked securities, the largest monetary sanction the regulator has levied. Banks account for 361.96 billion won in fines and 1.778 billion won in penalties, while brokerages face 9.282 billion won in fines and 1.612 billion won in penalties. The banks named are KB Kookmin, Shinhan, Hana, NH NongHyup, SC First, Woori and Suhyup, with the FSC citing omissions in simulated return disclosures and failure to account for certain information as breaches of the Financial Consumer Protection Act. The scale of the penalty signals tougher enforcement on complex retail product sales, and the next focus is how the 13 institutions absorb the charges and whether further ELS-related compensation or supervisory action follows.