The banking sector has officially begun the voluntary compensation process related to losses from Hong Kong H-Index (Hang Seng China Enterprises Index·HSCEI) based equity-linked securities (ELS). Following Hana and Shinhan Banks, KB Kookmin Bank will also start formal negotiations from next week. SC First Bank is expected to hold a voluntary adjustment committee next week and initiate compensation procedures within this month. However, some subscribers are opposing the Financial Supervisory Service's dispute mediation guidelines by launching a National Petition to the National Assembly, indicating potential difficulties ahead.
According to the financial sector on the 12th, Kookmin Bank will commence the voluntary adjustment process for Hong Kong H-Index ELS from the 15th. Kookmin Bank's ELS sales amount to approximately 8 trillion KRW, the largest among commercial banks. A Kookmin Bank official stated, "We plan to proceed with voluntary adjustments sequentially, starting with customers whose account maturities have arrived and whose compensation ratios have been confirmed." Customers with confirmed compensation ratios will be selected weekly in order of account maturity. To this end, Kookmin Bank previously established a 'Voluntary Adjustment Council.' Together with the existing customer protection department, it plans to support prompt investor compensation processing.
First Bank will also hold an ELS adjustment committee composed of external experts on the 18th. A First Bank official explained, "After the committee meeting, we plan to sequentially begin adjustment notifications to customers whose accounts mature this month."
Other banks are also conducting voluntary compensation procedures for Hong Kong H-Index ELS investors. Hana Bank paid compensation through agreements with some subscribers on the 29th of last month.
Following Hana Bank, Shinhan Bank reportedly paid compensation to 10 Hong Kong H-Index ELS subscribers on the 4th. Shinhan Bank held a board meeting on the 29th of last month, accepted the Financial Supervisory Service's dispute mediation guidelines, decided on voluntary compensation, and established a voluntary adjustment council staffed with experts within the Consumer Protection Group. Through this council, Shinhan Bank reviewed and resolved compensation plans for some investors.
Woori Bank, which has the smallest Hong Kong H-Index ELS sales amounting to about 40 billion KRW among major banks, will start the voluntary compensation process for customers with confirmed losses from the 12th. Woori Bank plans to individually contact customers with confirmed loss amounts from that day to guide them on the voluntary adjustment process and methods and negotiate adjustment ratios. The bank expects that if customers agree to the compensation plan, payments could be made within as soon as a week.
NH Nonghyup Bank is also in the preparatory stage to implement voluntary compensation. A Nonghyup Bank official said, "We have not yet set a clear timeline for voluntary compensation," adding, "We are in the process of forming a voluntary adjustment council and preparing detailed operational plans."
However, as subscriber opposition continues, some difficulties are anticipated. Since the 9th, subscribers have been conducting a 'National Petition to the National Assembly Requesting the Withdrawal of the Differential Compensation Plan for Hong Kong ELS Incident Victims.' This petition had gathered over 2,800 signatures by 3 p.m. the previous day. Subscribers are considering collective lawsuits if there is no progress after the petition. Gil Seong-ju, chairman of the Hong Kong ELS Victims Association, said in a phone interview, "We are monitoring the results of the national petition, and if the issue remains unresolved afterward, we are also considering collective litigation."
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