KIKO Compensation Rejected by KDB Industrial Bank Following Citi's Stance on Ilseong Hysco

[Asia Economy Reporter Kangwook Cho] Korea Development Bank has decided not to accept the compensation proposal for Ilseong Highsco, a company affected by the 'KIKO' losses, as recommended by the Financial Supervisory Service (FSS). This is the second 'rejection' following Citibank.

According to financial authorities and the financial sector on the 5th, Korea Development Bank decided not to accept the KIKO compensation recommendation made by the FSS Dispute Mediation Committee in December last year.

A senior official from the FSS said, "Korea Development Bank has announced that it will not accept the FSS's compensation recommendation for Ilseong Highsco."

Last year, the FSS Dispute Mediation Committee decided that six banks that sold KIKO (Shinhan, KDB Korea Development Bank, Woori, Citi, Hana, and Daegu) should compensate four affected companies for 15-41% of their losses. The compensation amounts by bank are ΔShinhan Bank 15 billion KRW ΔWoori Bank 4.2 billion KRW ΔKorea Development Bank 2.8 billion KRW ΔHana Bank 1.8 billion KRW ΔDaegu Bank 1.1 billion KRW ΔCitibank 600 million KRW. According to the recommendation, Korea Development Bank should compensate Ilseong Highsco with 2.8 billion KRW.

Regarding this, Korea Development Bank stated, "We have decided not to accept the FSS Dispute Mediation Committee's compensation recommendation for Ilseong Highsco," adding, "After careful consideration and referring to legal opinions from law firms, we reached this decision."

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