Regulator finalizes 370 bln-won penalties on banks, securities firms over mis-selling of HK-tied derivatives

What happened: South Korea's Financial Services Commission finalized combined penalties on seven banks and six securities firms over mis-selling of equity-linked securities tracking Hong Kong's H Index. Key numbers: Total penalties 370 billion won (US$276 million), down from an initial 1.4 trillion-won fine and an FSS proposal of 600 billion won. Why it matters: The amount was sharply cut partly because the lenders had already compensated customers for losses. The regulator also ordered banks to compensate part of customer losses for failing to disclose contract terms and risks.

South Korea's Financial Services Commission finalized combined penalties on seven banks and six securities firms over mis-selling of equity-linked securities tracking Hong Kong's H Index.

The amount was sharply cut partly because the lenders had already compensated customers for losses. The regulator also ordered banks to compensate part of customer losses for failing to disclose contract terms and risks.