Woori Bank to Compensate Lime Investors with Unconfirmed Losses an Average of 65%

10%p Higher Than KB Securities (Average 55%)
IBK Bank Expected to Compensate 55-60% on Average

[Asia Economy Reporter Wondara] Woori Bank is expected to compensate Lime fund investors an average of 65%.

On the 2nd, a financial regulator stated, "As a result of the simulation, the compensation rate applied to Woori Bank Lime fund investors was an average of 65%." The outstanding amount of Lime funds at Woori Bank is 270.3 billion KRW (1,348 accounts). The Financial Supervisory Service (FSS) has received 182 dispute mediation complaints.

Woori Bank's average compensation rate is 10 percentage points higher than KB Securities (average 55%), which went through the Dispute Mediation Committee before Woori Bank and Industrial Bank of Korea (IBK). It is analyzed that this is higher than KB Securities because securities customers tend to have a more aggressive investment style than bank customers.

IBK, which also received the Dispute Mediation Committee results along with Woori Bank, is expected to provide compensation averaging 55?60%. IBK's outstanding amount is 28.6 billion KRW (20 dispute mediation complaints).

Meanwhile, on the 23rd of last month, the FSS held the Dispute Mediation Committee and decided to apply a basic compensation rate of 55% for Woori Bank and 50% for IBK.

For the three Lime fund investment loss cases that were first mediated, the compensation rates were decided to be between 65% and 78%. In Woori Bank's case, 78% compensation was applied for selling risky products to an 82-year-old elderly person who requested principal protection, and 68% compensation was applied for selling ultra-high-risk products to a small business after arbitrarily classifying the investment propensity as "aggressive." For an IBK customer who wanted a fixed deposit but whose investment propensity was arbitrarily classified as "risk-neutral," 65% compensation was ordered.