Woori and IBK Confirm Lime Scandal Compensation Ratio on 23rd... Disciplinary Hearing on 25th (Comprehensive)

Earlier, KB Securities at 60%... There Are Also Expectations That the Compensation Ratio in the Banking Sector Will Be Higher

[Asia Economy Reporter Wondara] The basic compensation ratio for Woori Bank and Industrial Bank of Korea (IBK) in the Lime scandal will be announced on the 23rd. The financial sector is focusing on whether it will exceed the 60% level previously received by KB Securities.

On the 22nd, a Financial Supervisory Service (FSS) official said, "The dispute mediation committee results for Woori Bank and IBK are scheduled to be announced on the morning of the 23rd." The scale of Lime fund sales by these banks is approximately 270 billion KRW and 28 billion KRW, respectively. Depending on the basic compensation ratio, Woori Bank and IBK will first compensate, and after confirming the loss amount, additional repayments will be settled according to the basic compensation ratio. Previously, KB Securities' basic compensation ratio was set at 60%, and voluntary adjustments were made with compensation ratios ranging from 40% to 80% depending on investors' experience and other factors.

Some analysts suggest that the average compensation ratio for Woori Bank and IBK may be higher than that of KB Securities due to the more conservative nature of bank investors compared to securities investors. This is based on the premise that securities customers tend to have an 'aggressive investment' style, whereas bank customers are relatively stability-oriented.

Woori Bank with Son Tae-seung 'Suspended from Duty' Faces Disciplinary Hearing on the 25th... KB Securities Downgraded to 'Reprimand'

In the financial sector, even if a high compensation ratio is announced, it is expected that the banks facing disciplinary hearings will accept it and focus on agreeing to investor compensation plans. This is because Woori Bank, whose Chairman Son Tae-seung has been pre-notified of a 'suspension from duty,' is scheduled for a disciplinary hearing just two days later on the 25th. Last year, the FSS revised the enforcement rules on inspections and sanctions for financial institutions to include 'efforts to fully compensate victims of financial transactions and restore damages' as a consideration in determining sanctions.

The Consumer Protection Department, which oversees the dispute mediation committee, appears as a reference witness at the bank disciplinary hearings. KB Securities accepted the FSS's dispute mediation proposal related to the Lime fund, and subsequently, three investors who purchased Lime funds from KB Securities accepted the compensation plan proposed by the mediation committee, marking the first establishment of dispute mediation for Lime funds with unconfirmed losses. In the subsequent disciplinary hearing, the disciplinary level for CEO Park Jung-rim was lowered from the pre-notified suspension from duty to a 'reprimand.'

After the dispute mediation for Woori Bank and IBK, dispute mediations for other sellers are expected to follow. NH Nonghyup Bank, Busan Bank, and Gyeongnam Bank are among the candidates. Among securities firms, Shinhan Financial Investment and Daishin Securities are expected to either conduct voluntary adjustments based on the KB Securities standard or undergo separate dispute mediation committees.

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