[2020 National Audit] Rep. Yoo Ui-dong, "Compensation for Financial Investment Product Damages Over 5 Years: 1.066 Trillion Won"

Yu Uidong, member of the People Power Party

[Asia Economy Reporter Eunmo Koo] It has been revealed that the compensation amount for damages caused by financial investment products such as funds sold by financial companies over the past five years has reached 1.066 trillion KRW.

According to the 'Compensation Payment Details for Investor Damages from Financial Investment Products over the Past Five Years' submitted by the Financial Supervisory Service to Yoo Eui-dong, a member of the National Assembly's Political Affairs Committee from the People Power Party, the total compensation amount either prepaid or scheduled to be paid to victims due to issues with financial investment products sold by banks and securities companies from January 2016 to the end of August this year was 1.066 trillion KRW.

The total compensation amount decided for problematic financial investment products sold by banks was 461.5 billion KRW. Looking at the compensation amounts by bank, Woori Bank, which sold the Lime Fund, had the highest compensation amount of 139 billion KRW, followed by Shinhan Bank, which sold the Lime Trade Fund, with 137 billion KRW, and Hana Bank, which sold Italy Healthcare, Lime, and Discovery funds, with 108.5 billion KRW.

In addition, securities companies that sold the controversial financial investment products also prepaid or are scheduled to pay a total compensation amount of 605.1 billion KRW to victims. By securities company, Shinhan Financial Investment, which sold the Lime and German Heritage funds, accounted for 253.2 billion KRW, and NH Investment & Securities, which sold Optimus, accounted for 178 billion KRW. Shin Young Securities and Daishin Securities, which sold Lime, decided to compensate 57 billion KRW and 46.2 billion KRW respectively, following behind.

Assemblyman Yoo Eui-dong said, "The redemption suspension incidents are occurring one after another due to fraud and Ponzi schemes by asset management companies, and the damage exceeds an unimaginable scale," adding, "If there are related parties who have neglected their duty to monitor and evaluate asset management companies, they should seek solutions through reasonable compensation to the victims."

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