South Koreaโs Financial Services Commission has finalized 371.24 billion won in fines against seven banks and six securities firms over the mis-selling of Hong Kong-linked H Index equity-linked securities. The penalties include 361.96 billion won for the banks and 9.282 billion won for the securities firms, along with separate administrative fines of 1.778 billion won and 1.612 billion won. Regulators said sales processes omitted simulation results showing investment risks and, in some cases, oversimplified the productsโ complex profit and loss structure.
The decision concludes a three-year enforcement process and marks the first major application of the Financial Consumer Protection Act to major financial companies, although the final amount was reduced after legal review, compensation payments and some civil court outcomes.