Hana Bank Accepts Hong Kong ELS Dispute Resolution Proposal... Establishes Voluntary Compensation Committee

Board of Directors Resolves to Accept Dispute Mediation Standards
Establishment of Autonomous Compensation Committee Including 3 External Experts

Hana Bank announced on the 27th that its board of directors resolved to accept the Financial Supervisory Service's dispute mediation standards for Hong Kong H Index (Hang Seng China Enterprises Index·HSCEI) based equity-linked securities (ELS) and has prepared a voluntary compensation plan to promptly initiate investor compensation procedures accordingly.

As of the end of last year, Hana Bank's outstanding balance of Hong Kong H Index ELS (combined ELT and ELF basis) was approximately KRW 2.03 trillion, and the amount that entered the loss zone among the maturities in the first half of this year was about KRW 750 billion.

Hana Bank plans to thoroughly resolve investor uncertainty and restore trust by implementing swift investor protection measures targeting investors whose maturity losses have been confirmed or who have currently entered the loss zone due to the decline of the Hong Kong H Index, through a voluntary compensation plan specifically prepared by the bank in accordance with the dispute mediation standards.

Additionally, the bank has established the 'Hong Kong H Index ELS Voluntary Compensation Committee' and the 'Hong Kong H Index ELS Voluntary Compensation Support Team' within the Consumer Protection Group to ensure fairness and rationality in the ELS voluntary compensation process and to support systematic operations for smooth damage compensation processing.

In particular, the ELS Voluntary Compensation Committee consists of a total of 11 members, including three external experts with extensive knowledge and experience in financial industry and derivative-related laws, as well as consumer protection. The committee aims to objectively understand individual factors and facts for each investor during the voluntary mediation process and strictly apply the Financial Supervisory Service's dispute mediation standards to conduct a fairer compensation procedure.

With the establishment of a specific voluntary compensation plan and a dedicated voluntary compensation organization, Hana Bank plans to promptly determine the compensation ratio and pay compensation to investors whose losses have been confirmed.

A Hana Bank official stated, “We will do our best to achieve smooth communication and compensation with customers who invested in the Hong Kong H Index ELS products through this voluntary compensation process,” and added, “We will continue to prioritize consumer protection as the bank’s top value and provide customer-centered financial services that customers can trust and rely on.”