Woori and Hana Bank Begin Voluntary Compensation for 1,000 DLF Loss Cases

Received Compensation Standards from FSC on the 14th
Woori Bank 600 Cases, Hana Bank 400 Cases

[Asia Economy Reporter Kim Hyo-jin] Woori Bank and KEB Hana Bank have simultaneously begun voluntary compensation related to losses from overseas interest rate-linked derivative-linked funds (DLF).

According to financial authorities and the financial sector on the 16th, these banks received the 'DLF Incomplete Sales Compensation Standard' from the Financial Supervisory Service on the 14th. Accordingly, the two banks have entered the full compensation procedure based on the results of their voluntary investigations conducted so far.

On the 5th of last month, the Financial Supervisory Service made compensation decisions on six representative cases brought before the Dispute Mediation Committee and instructed banks to compensate other cases through voluntary adjustment. Compensation for the six representative cases was completed on the 7th.

Woori Bank will proceed with voluntary compensation for about 600 cases, and KEB Hana Bank for about 400 cases. The compensation ratio will be adjusted based on the 55% standard decided by the Dispute Mediation Committee last month, and payments will vary depending on reasons for adjustment such as compliance with sales procedures and past investment experience.

Investors who receive the compensation ratio through branches can decide whether to accept it and submit a consent form to receive immediate payment.

Earlier this year, Woori Bank formed the 'DLF Agreement Mediation Council' and completed fact-finding investigations targeting customers and salespersons, receiving prior reviews from multiple law firms to ensure fairness.

The DLF Agreement Mediation Council was established to set reasonable agreement standards related to DLF financial dispute mediation and to facilitate smooth customer agreements. It consists of seven members, including external experts, WM group heads, compliance officers, and heads of the Financial Consumer Protection Center.

KEB Hana Bank has formed the 'DLF Compensation Committee' composed of six external experts appointed based on recommendations from the legal community, financial-related academic societies, and civic groups, conducting voluntary investigations. At the meeting on the 14th, the DLF Compensation Committee stated, "We will do our best to build trust and create a healthy financial market through fair and reasonable compensation."

All investors accepted the six representative cases for which compensation decisions were made last month, and since the compensation ratios were decided higher than before and the banks also decided to accept them, the financial sector views that accepting voluntary compensation plans is more advantageous than litigation.

A bank official said, "We plan to proceed with compensation as quickly as possible, so the compensation procedures may be completed within this month."

This content was produced with the assistance of AI translation services.