Seoul– Hana Bank, one of South Korea’s major commercial banks, has been fined nearly 18 billion won ($12.3 million) for mis-selling private fund products to customers without adequately explaining the investment risks, industry sources said on Monday.
According to the Financial Supervisory Service (FSS), the bank sold nine types of private funds between 2017 and 2019 that were tied to overseas loan bonds and similar assets, including investments linked to Italy and Britain. A total of 963 investors purchased the products, with combined sales valued at 377.9 billion won, Yonhap News Agency reported.
The FSS determined that Hana Bank failed to properly disclose key risk-related information and, in some instances, either distorted or omitted critical details. The bank allegedly concealed the possibility of investment losses and presented the products in a way that led investors to believe both principal and returns were secure, as though the funds were guaranteed.
In addition to the corporate fine, the regulator imposed disciplinary measures on approximately ten bank officials, including reprimands and salary reductions.
Meanwhile, South Korean equities surged on Monday morning, buoyed by growing optimism that the government will move forward with dividend tax reforms aimed at encouraging higher corporate payouts.
The benchmark KOSPI index rose 114.08 points, or 2.89 percent, to 4,067.84 as of 11:20 a.m.
The government and the ruling Democratic Party on Sunday agreed to push for lowering the proposed top dividend tax rate, following an earlier tax reform plan introduced in July that sought to promote dividend income through separate tax treatment.
Financial stocks led the rally, with KB Financial up 4.53 percent and Shinhan Financial gaining 2.71 percent. Market heavyweight Samsung Electronics advanced 2.45 percent, while semiconductor producer SK hynix surged 5.86 percent. (Source: IANS)
