ELS compensation ratios for five banks to be drawn in two weeks

2024.05.03 09:07:01 | 2024.05.03 09:09:01

[Photo by Kim Ho-young]이미지 확대

[Photo by Kim Ho-young]

The Financial Supervisory Service will begin a resolution process in two weeks‘ time to determine each seller’s compensation ratio for losses on the equity-linked securities (ELS) tied to Hong Kong‘s Hang Seng China Enterprises Index (HSCEI) that they sold.

According to industry sources on Thursday, the Financial Supervisory Service notified five banks that were the sellers of the products in question?KB Kookmin Bank, Shinhan Bank, Hana Bank, NH Nonghyup Bank, and Standard Chartered Bank Korea?that it will hold a financial dispute resolution meeting on May 13th, 2024.

During the dispute resolution meeting, a representative case will be presented by each bank to determine a specific compensation ratio, and a settlement proposal based on the ratio will be presented to both sellers and victims. The process of determining a “representative” case at each seller will be the standard for estimating the compensation ratio for both sellers and victims.

By Yoo Joon-ho and Chang Iou-chung

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