Woori and Hana Bank Begin Voluntary Compensation for DLF After Receiving Guidelines from FSC (Comprehensive)

Financial Supervisory Service Delivers Compensation Standards on 14th
Woori Bank 600 Cases, Hana Bank 400 Cases
"Procedures May Be Completed Within This Month"

[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 process 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 issued guidelines for 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, with differential payments depending on reasons 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 Settlement Mediation Council' and completed fact-finding investigations targeting customers and salespersons, receiving prior reviews from multiple law firms to ensure fairness.

The DLF Settlement Mediation Council was established to set reasonable settlement standards related to DLF financial dispute mediation and to facilitate smooth customer agreements. It consists of seven members, including external experts, the WM Group head, the Compliance Officer, and the Head of the Financial Consumer Protection Center.

KEB Hana Bank formed the 'DLF Compensation Committee,' composed of six external experts appointed based on recommendations from the legal community, financial academic societies, and civic groups, and has been 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 six representative cases with compensation decisions last month were accepted by investors, and since the compensation ratios were decided higher than before and the banks also agreed 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 process may be completed within this month."

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