ELS Voluntary Compensation, Kim Juhyun: "I Don't Understand Why Breach of Trust Issues Are Arising"

Dispute Mediation Proposal, "Let's Handle It Efficiently"

Kim Juhyun (center front row), Chairman of the Financial Services Commission, along with other key guests, is speaking at the 'Rapid Credit Recovery Support Implementation Event for Low-Income and Small Business Owners' held on the 12th at the Bankers' Hall in Jung-gu, Seoul. Photo by Kang Jinhyung aymsdream@

When the financial authorities' dispute resolution standards for Hong Kong H Index (Hang Seng China Enterprises Index·HSCEI)-based equity-linked securities (ELS) released the day before sparked backlash from the banking sector over potential breach of fiduciary duty, Financial Services Commission Chairman Kim Joo-hyun said, "Honestly, I don't quite understand why the issue of breach of fiduciary duty is arising."

On the morning of the 12th, after attending an event at the Bankers' Hall in Jung-gu, Seoul, aimed at rapid credit recovery support for low-income small business owners, Chairman Kim told reporters, "The Financial Supervisory Service created the dispute resolution standards with reasonable criteria and intends to handle the matter quickly and efficiently based on these standards."

He added, "If there is a clear breach of fiduciary duty that the Financial Services Commission recognizes and agrees with, we will correct it," but also said, "At this point, I do not understand why the breach of fiduciary duty issue is coming up."

The banking sector is opposing the voluntary compensation mentioned by the authorities, citing concerns over breach of fiduciary duty. Given that foreign ownership accounts for 60-70% of domestic commercial banks, they argue it is difficult to decide on compensation without concrete grounds such as confirmed sanctions by authorities or court rulings.