Four Major Commercial Banks Join KIKO Consortium... Expected to Launch by the End of This Month

Shinhan, Woori, Hana, KB Kookmin Bank Confirm Participation
Operation Expected as Early as End of This Month, No Later Than Early Next Month

[Asia Economy Reporter Jo Gang-wook] Four major commercial banks, including KB Kookmin Bank, have joined the bank council that will handle the additional dispute voluntary adjustment issue related to the foreign exchange derivative product KIKO (Knock-In Knock-Out) incident. The council is expected to start operating as early as the end of this month.

According to financial circles and authorities on the 21st, KB Kookmin Bank recently expressed its intention to participate in the bank council to the Financial Supervisory Service. With this, all four major commercial banks?KB Kookmin, Shinhan, Woori, and Hana Bank?have confirmed their participation. Daegu Bank and Citibank have also decided to participate.

NH Nonghyup, Industrial Bank of Korea, SC First Bank, and HSBC Bank have not yet decided on their participation. The Korea Development Bank has also not communicated its participation status.

Industry insiders expect the council to begin operations as early as the end of this month or by early next month at the latest. The council aims to create guidelines for banks that sold KIKO to use as a reference when voluntarily adjusting disputes with affected companies.

Banks are expected to decide on compensation eligibility and ratios through board discussions based on the future voluntary adjustment guidelines.

The Financial Supervisory Service plans to actively provide the bank council with compensation ratio calculation standards previously used by the subcommittee and Supreme Court precedents to assist banks in smooth voluntary compensation.

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