FSS ELS penalty 6,000billion-won reduction divides financial stocks

The Financial Supervisory Service adjusted the penalties imposed on banks 5 for the mis-selling of equity-linked securities (ELS) sold in Hong Kong. The original aggregate amount of 1trillion4,000billion won was reduced to 6,000billion won. The FSS announced the relevant procedures and reasons for the reduction.

Bank and financial holding company shares moved following the news of the penalty reduction. Shinhan Financial Group rose 6% intraday. Other financial stocks also generally saw active trading.

Samsung affiliates showed divergent trends. Samsung Fire & Marine Insurance rose 11%. By contrast, Samsung Life Insurance fell 11%.

The Financial Supervisory Service and 8financial holding companies 5have signed a memorandum of understanding to strengthen consumer protection capabilities. They said the agreement focuses on the sale of financial products and responses to consumer complaints. The two sides agreed to establish a cooperation system.

Among securities firms, Shinyoung Securities 1decided to cancel treasury shares worth a trillion won. The company disclosed its plan to cancel treasury shares. The related disclosure became a factor in investment decisions in the market.

This series of announcements involved the Financial Supervisory Service’s adjustment of a surcharge, movements in financial holding companies’ share prices, mixed movements in insurers’ share prices, and the simultaneous disclosure of a treasury-share cancellation. The related disclosures can be checked through each company’s disclosure channel. If additional disclosures are issued, the market response may change.