Preemptive Compensation for Private Equity Fund Victims... Praised for "Outstanding Responsible Management"

2020 Asia Economy Fund Awards Distributor - Korea Investment & Securities

[Asia Economy Reporter Ji Yeon-jin] Korea Investment & Securities, which won the Best Distributor Award at the 2022 Asia Economy Fund Awards, received high marks for its decision last June to proactively compensate investors in full for losses related to the private equity fund redemption suspension incident. The company's responsible management and follow-up measures, prioritizing customers even at the cost of bearing losses, were highly praised.

After completing the compensation work for private equity funds, Korea Investment & Securities strengthened the functions and responsibilities of the Investment Product Selection Committee and established a dedicated organization for post-management of investment products. Additionally, the company promoted innovation across its sales practices by expanding employee training and audits related to product sales and revamping the related evaluation and compensation systems. In particular, guidelines were established in the process to strengthen product screening and selection, enhancing review from the product sourcing stage.

As a result, Korea Investment & Securities ranked first overall in the fund distributor evaluation conducted last year by the Korea Financial Consumer Protection Foundation, which surveyed banks, securities firms, and insurance companies. This was a remarkable jump of 11 places from 12th position a year earlier. The number of complaints also significantly decreased. According to the Korea Financial Investment Association, Korea Investment & Securities received 196 complaints in 2021, more than halving compared to the previous year. This contrasts with the total complaints of 4,411 across 20 securities firms, which increased by 46% from 3,022 the previous year.

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