Shinhan Bank Unable to Conclude KIKO Compensation... "Further Review Needed"

Decided to Request Deadline Extension from Financial Supervisory Service

[Asia Economy Reporter Kwon Haeyoung] Shinhan Bank has decided to request the Financial Supervisory Service (FSS) to extend the deadline for accepting the dispute mediation proposal regarding the foreign exchange derivative product 'KIKO'.

According to the financial sector on the 4th, Shinhan Bank agreed to request an extension of the decision deadline, originally scheduled for the 7th, concerning the FSS's recommendation for KIKO compensation.

Initially, the KIKO compensation agenda was to be submitted to the board of directors, but outside directors requested additional review, so it was reportedly not brought to the board. Shinhan Bank had previously postponed the KIKO compensation decision deadline once, from the 8th of last month to the 7th of this month, but explained that more time is needed for further review.

A Shinhan Bank official said, "There was a consensus that additional review is necessary regarding KIKO," and added, "We plan to request the FSS to extend the deadline for accepting the compensation decision until the end of February."

In December of last year, the FSS recommended six banks?Shinhan, Woori, KDB Industrial, Hana, Daegu, and Korea Citibank?to compensate four KIKO-affected companies a total of 25.5 billion KRW (15-41% of the damage amount). Shinhan Bank is required to compensate a total of 15 billion KRW to affected companies including Ilseong Hysco. If Shinhan Bank accepts the 15 billion KRW compensation in this dispute mediation, an autonomous adjustment procedure worth 40 billion KRW will follow.

Meanwhile, Woori Bank held a board meeting last week and decided to accept the FSS's compensation recommendation for two KIKO-affected companies. This comes 12 years after the 2008 KIKO incident.

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