The financial dispute mediation committee under South Korea’s Financial Supervisory Service recommended the payment of refunds in a fund failure case involving a fund product sold by KEB Hana Bank between 2017 and 2019.
The nonbinding decision held KEB Hana Bank liable for misselling financial products, in violation of the Financial Investment Services and Capital Markets Act, and applies to complaints filed by two fund customers who put money in a fund marketed as a portfolio investment in Italy’s healthcare industry.
The combined principal amounting to 153.60 billion won has not been returned to investors, who hold 504 accounts linked to the fund, the regulator said in a June 13 statement.
The decision sets 75% and 80% limits on any refund to be paid by KEB Hana Bank, depending on the bank’s handling of individual contracts.
As of June 13, US$1 was equivalent to 1,292.16 South Korean won.