Hong Kong ELS First Voluntary Compensation... Hana Bank Reaches Agreement with Investors and Makes Payment

All Major Banks Decide on Voluntary Compensation... Compensation Scale Expected to Reach Around 2 Trillion Won

For the first time in the banking sector, a case has emerged where a customer who suffered losses from the Hong Kong H Index equity-linked securities (ELS) received voluntary compensation.

According to the financial sector on the 29th, Hana Bank conducted the first voluntary compensation for customers who incurred losses from the H Index ELS on the same day. Hana Bank had resolved to accept the Financial Supervisory Service's dispute mediation standards for the H Index ELS at an extraordinary board meeting held on the afternoon of the 27th, two days prior. Subsequently, on the 28th, the 'Hong Kong H Index ELS Voluntary Compensation Committee' reviewed and approved individual voluntary compensation plans, and after reaching agreements with some investors, compensation payments were made on the day.

Hana Bank was the fastest in the banking sector to pay compensation because it had been preparing in advance for compensation as customers with confirmed losses due to the maturity of the H Index from the second half of last year emerged. A Hana Bank official stated, "This is the result of amicable agreements on compensation ratios with investors whose losses from the Hong Kong H Index ELS investment were confirmed and whose facts were verified," adding, "We will continue to ensure investor protection and restore trust through transparent and prompt compensation procedures."

Meanwhile, as of this day, KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup, SC First Bank, and Korea Citi Bank have all completed board resolutions regarding voluntary compensation for the H Index ELS. Focusing on sales from January to July 2021 (maturing from January to July 2024), where losses are confirmed, the compensation scale of these banks is estimated to reach the 20 trillion won level.