Shinhan Bank Finalizes Decision to Reject FSC's Recommendation for KIKO Compensation

[Asia Economy Reporter Kangwook Cho] Shinhan Bank has made a final decision to reject the compensation recommendation for the foreign exchange derivative product KIKO.

On the 5th, Shinhan Bank held a board meeting and announced that it decided not to accept the compensation recommendation for the four companies for which the Financial Supervisory Service's Dispute Mediation Committee made a mediation decision.

The Shinhan Bank board of directors had been reviewing the Financial Supervisory Service's KIKO compensation recommendation but had not reached a conclusion for six months. The period to notify acceptance was extended five times.

A Shinhan Bank official said, "It was not an easy decision, but after consulting multiple law firms and long internal deliberation, the bank reached the conclusion that acceptance was difficult," adding, "This decision was finally made through the board of directors."

However, regarding KIKO, Shinhan Bank plans to review the facts and discuss appropriate response measures through participation in the bank consultative body for additional companies recommended by the Financial Supervisory Service for voluntary adjustment, among those companies that have not yet received court rulings.

Earlier, the Financial Supervisory Service's Dispute Mediation Committee found Shinhan, Woori, Industrial, Hana, Daegu, and Citi Banks responsible for incomplete sales and recommended compensation of 15-41% of losses to four companies: Ilseong Highsco, Namhwa Trading, One Global Media, and Jaeyoung Solutek. The compensation amounts are 15 billion KRW for Shinhan Bank, 4.2 billion KRW for Woori Bank, 2.8 billion KRW for Industrial Bank, 1.8 billion KRW for Hana Bank, 1.1 billion KRW for Daegu Bank, and 600 million KRW for Citi Bank, in that order.

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