Shinhan and Hana Bank Finalize Decision to Reject FSC's Recommendation for KIKO Compensation (Comprehensive)

[Asia Economy Reporter Kangwook Cho] Shinhan Bank and Hana Bank have reached a final decision to reject the Foreign Exchange Derivatives KIKO (Knock-In Knock-Out) compensation recommendation.

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.

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

Hana Bank also held a board meeting on the same day and concluded to reject the Financial Supervisory Service's Dispute Mediation Committee's compensation recommendation.

A Hana Bank official explained, "Based on a long-term, in-depth verification of facts and legal review, and through sufficient discussion by the board members, we decided not to accept the mediation result."

However, these two banks plan to review the facts and discuss appropriate response measures through participation in the bank consultative body regarding additional companies for which the Financial Supervisory Service recommended voluntary mediation but have not yet received court rulings related to KIKO.

These banks have been reviewing the Financial Supervisory Service's KIKO compensation recommendation but have not reached a conclusion for six months. The period to notify acceptance or rejection was extended five times.

Previously, the Financial Supervisory Service's Dispute Mediation Committee found Shinhan, Woori, Korea Development Bank, Hana, Daegu, and Citibank 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 Korea Development Bank, 1.8 billion KRW for Hana Bank, 1.1 billion KRW for Daegu Bank, and 600 million KRW for Citibank, respectively.

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