Hana Bank Postpones Lime Fund 100% Compensation Decision to Next Board Meeting

On the 3rd, the headquarters of Hana Bank in Jung-gu, Seoul, displayed the brand name "Hana Bank" without "KEB." Hana Bank announced that from this day forward, the brand name will change from KEB Hana Bank to "Hana Bank," marking a fresh start as the new Hana Bank preparing for the next decade. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Min-young] Hana Bank has postponed its decision on whether to accept the Financial Supervisory Service Dispute Mediation Committee's (FSS DMC) recommendation for 100% compensation of the Lime Trade Finance Fund.

On the 21st, Hana Bank held a board meeting to discuss full compensation for the Lime Trade Finance Fund, but stated, "If we accept the FSS DMC's decision, the mediation will be established and will have the same effect as a judicial settlement. Therefore, we believe it is necessary to review the acceptance of the DMC's result more carefully, and we plan to request an extension of the decision deadline until the next board meeting."

It is reported that the board was unable to reach a conclusion on acceptance due to issues such as breach of trust. The next board meeting is scheduled to be held after mid-next month.

Previously, on the 30th of last month, the FSS DMC held a meeting and applied Article 109 of the Civil Act, 'Contract Cancellation Due to Mistake,' to four dispute mediation applications related to the Lime Trade Finance Fund sold since November 2018, deciding on 100% compensation. This is the first recommendation for full principal compensation for an investment product.

By sales company, Woori Bank leads with 65 billion KRW, followed by Shinhan Financial Investment with 42.5 billion KRW, Hana Bank with 36.4 billion KRW, Mirae Asset Daewoo with 9.1 billion KRW, and Shin Young Securities with 8.1 billion KRW, totaling 161.1 billion KRW.

The deadline for responses regarding full compensation was the 27th of this month.

Market consensus suggests that other financial companies, including Woori Bank, which will hold a board meeting on the 24th, are likely to request an extension of the compensation decision deadline.

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