FSS ELS fine 1trillion won4,000hundred million won →6,000Bank stocks rally after reduction
The Financial Supervisory Service reduced the fines imposed on banks over the mis-selling of Hong Kong ELS products from 5banks by 1trillion4,000hundred million won to 6,000hundred million won. On the news, banks and financial holding companies, including Shinhan Financial Group, rose strongly, while insurance stocks showed mixed performance over shareholder-return issues related to Samsung Electronics’ stake.
The Financial Supervisory Service announced that on 6month 4day, it had reduced the fines imposed on 5banks in connection with the mis-selling of Hong Kong ELS products from 1trillion4,000hundred million won to 6,000hundred million won. The FSS disclosed the specific reasons for the reductions and the amount reduced for each target.
Bank and financial holding company shares rose immediately after the reduction was announced. Shinhan Financial Group recorded an intraday gain of 6%. It was reported that the share prices of many banks rose together.
The shareholder-return issue surrounding Samsung Electronics’ stake affected insurance stocks. Samsung Fire & Marine Insurance rose 11%, while Samsung Life Insurance fell 11%. The two companies released related disclosures and investor responses.
Securities firms also moved toward shareholder returns. Shinyoung Securities 1announced the cancellation of treasury shares worth trillion won. The CEO of Pharos iBio disclosed that the company had purchased treasury shares.
This series of announcements led to share-price fluctuations across the financial sector, including banks, insurers and securities firms. The companies concerned are disclosing details through separate regulatory filings.
The related regulatory filings 6month 4day and 6month 5day. Investors need to check each company's additional disclosures and materials related to audit and reduction.