Financial Supervisory Service Fines Five Securities Firms Nearly 3 Billion Won for Hong Kong ELS Sales

The Financial Supervisory Service has imposed fines totaling approximately 3 billion won on five securities firms for the improper sale of Hong Kong H-Index equity-linked securities (ELS) products.

According to a regulatory disclosure on February 1, the Financial Supervisory Service imposed a fine of 1.68 billion won on KB Securities last month. The reason cited was a violation of the recording obligation during the sales process of the H-Index ELS and a failure to notify investors of investment risks during the cooling-off period. Among the sanctioned securities firms, KB Securities received the largest fine.

In addition, NH Investment & Securities (980 million won), Mirae Asset Securities (140 million won), Korea Investment & Securities (110 million won), and Samsung Securities (100 million won) were each fined for violations such as failure to comply with the recording obligation and other legal breaches that occurred during the sales of the H-Index ELS.