FSS, Hong Kong ELS-selling banks6,000billion won in fines
The Financial Supervisory Service2026year 6month 4decided to impose fines on banks that sold Hong Kong H-Index-linked ELS5banks, totaling billion won. The initially proposed level was6,000trillion 1billion won, but the amount was reduced. During the same period, the FSS4,000year 2026month 6imposed an administrative fine on Daol Securities for soliciting high-risk products to retail investors on3.
The Financial Supervisory Service2026year 6month 4announced that it would impose fines on5banks that sold Hong Kong H-Index (Hang Seng China Enterprises Index)-linked equity-linked securities (ELS). The total fines were reduced to around6,000billion won. The list of affected banks can be confirmed in the announcement materials.
This sanction was reduced from the level initially presented. The initial review proposal discussed an amount of1trillion 4,000billion won. The FSS explained that it had decided to reduce the amount.
These ELS are structured products based on the Hong Kong H-Index. The investment principles and loss structure are stated in the product prospectus and offering announcement issued at the time of sale. Suitability assessments and the duty to explain during the sales process were raised as key issues.
The Financial Supervisory Service 2026 year 6 month 3 day announced that it had imposed an administrative fine on Daol Securities for recommending that retail investors purchase high-risk products. Details of the fine amount can be found in company disclosures and other materials. The Financial Supervisory Service said it had detected and sanctioned the related violations.
The Financial Supervisory Service's announcement came in succession in early 6 month. These announcements constituted administrative measures based on issues concerning the appropriateness of the sales and solicitation process. Additional information should be confirmed through future disclosures by the relevant institutions and detailed materials from banks and securities firms.