Tag: els

els

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Sales of equity-linked securities decline in first half of year due to volatility

The issuance of equity-linked securities stood at 27.7 trillion won ($18.8 billion) in the first half of the year, down 41.7 percent from the previous six-month period.

2026.7.21

Investors protesting against Hong Kong Hang Seng Index ELS products hold a rally in front of KB Kookmin Bank’s headquarters in Yeouido, western Seoul, on March 29, 2024. [YONHAP].

Courts favor banks over investors in Hong Kong-linked equity product cases, hampering regulators

Banks are winning a string of court cases over losses tied to Hong Kong-linked equity products, and the decisions are now making regulators think twice before handing out billion-dollar fines.

2026.4.29

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Members of the Hang Seng Index ELS victims' association hold a rally in front of the Financial Supervisory Service headquarters in Yeouido, western Seoul, on April 24, 2024. [YONHAP]

Ruling on Hong Kong ELS losses deals blow to FSS's justification for record fines

A court ruling in favor of a bank in a lawsuit over losses tied to equity-linked securities in Hong Kong's index has undermined the financial regulator's justification for impending fines.

2026.1.26

Derivatives-linked security sales in Korea inch down during Q3

Sales of derivatives-linked securities in Korea inched down during the third quarter of the year, data showed Monday.

2024.12.30

Alleged victims of the equity-linked securities tied to the Hong Kong’s Hang Seng China Enterprises Index protest in front of the Financial Supervisory Service office in Yeouido, western Seoul, on Dec. 15. [YONHAP]

Hong Kong ELS victims may recoup 30 to 65 percent of losses

Investors in Hong Kong-tied derivative products may recoup 30-65% of their losses after committee arbitration.

2024.5.14

From left to right are the office buildings of KB, Shinhan, Hana and Woori financial holding firms. [EACH COMPANY]

Q1 earnings for financial big four decline on one-off expenses

Shinhan, Hana, Woori and KB all reported an on-year drop in earnings for the first quarter, driven largely by compensation reserves for Hong Kong-tied derivative products.

2024.4.26

Alleged victims of the equity-linked securities tied to Hong Kong’s Hang Seng China Enterprises Index protest in front of the Financial Supervisory Service office in Yeouido, western Seoul, on Dec. 15. [YONHAP]

Korean banks compensate retailers for Hong Kong-tied ELS losses

Other banks including KB Kookmin, Woori and HN Nonghyup are set to follow suit, but it appears to be taking some time for them to come up with their compensation plans for their Hong Kong-tied ELS investors.

2024.4.7

Investors of the troubled Hong Kong-tied derivative products demand full compensation for their losses in a protest held in central Seoul on March 15, 2024. [YONHAP]

KB, Shinhan to issue compensation for HK-linked ELS losses

The biggest seller of the troubled derivative products, KB Kookmin, and Shinhan announced that they would implement a voluntary compensation scheme on Friday.

2024.3.29

Traders that invested in the Hong Kong-tied derivative products march toward NongHyup Bank in central Seoul on March 15. [YONHAP]

NongHyup, SC to set up committee to manage ELS compensation

The bank will set up a committee to oversee the compensation, which will accord with the guideline issued by the country's financial regulator.

2024.3.28

Hana Financial Group headquarters in central Seoul [NEWS1]

Hana Bank to roll out compensation for Hong Kong-linked ELS losses

Hana Bank's board of directors agreed to initiate compensation for losses incurred through its sales of derivative products linked to a Hong Kong index.

2024.3.27