FSS: "Up to 80% Compensation Required for Incomplete Sales of Healthcare Funds"... Hana Bank "Will Compensate Promptly"

On the afternoon of the 9th, Kim Deuk-ui, Executive Director of the Financial Justice Solidarity, is speaking at a press conference held in front of the Seoul Metropolitan Police Agency in Jongno-gu, Seoul, regarding the submission of a complaint to the police against the main perpetrator of the Hana Bank Italy Healthcare Fund fraud.
[Photo by Yonhap News]

[Asia Economy Reporter Seungjin Lee] The Financial Dispute Mediation Committee of the Financial Supervisory Service (hereinafter referred to as the Mediation Committee) concluded on the 13th that Hana Bank bears up to 80% liability for damages related to the Italy Healthcare Fund.

On the same day, the Financial Supervisory Service announced that it recognizes Hana Bank's liability for damages in two cases referred to the Mediation Committee concerning the Italy Healthcare Fund sold by Hana Bank. This is the first decision by the Mediation Committee since the appointment of Director Lee Bok-hyun of the Financial Supervisory Service.

The Mediation Committee decided the compensation ratio at the maximum limit of 80% for the dispute mediation filed by general investor Mr. A, citing violations of the suitability principle, duty of explanation, and prohibition of unfair solicitation.

According to the Mediation Committee, Hana Bank only explained to Mr. A, who wanted a safe product to manage the proceeds from the sale of a business, that the product invested in safe accounts receivable, but omitted explanations about the possibility of losses.

The Mediation Committee explained that there were issues such as the seller arbitrarily inputting investor information different from what Mr. A had checked into the system and raising the minimum subscription amount higher than the amount stated in the product proposal document.

Regarding another general investor, Mr. B, the Mediation Committee recognized violations of the suitability principle and duty of explanation, deciding that Hana Bank bears 75% liability for damages.

It was investigated that Hana Bank explained to Mr. B, who wanted a safe product to manage matured deposits, that the product was safe with no risk of principal loss. Additionally, Hana Bank recommended investments without confirming Mr. B’s investment propensity, arbitrarily upgraded the investment grade, and did not provide explanatory materials after the investment. The failure to conduct monitoring calls due to Mr. B’s registration as a 'customer refusing marketing calls' was also problematic.

The Italy Healthcare Fund is a product investing in medical accounts receivable that Italian hospitals claim from local governments. Approximately 150 billion KRW worth was sold from October 2017 to September 2019. A full suspension of redemptions occurred, resulting in hundreds of investors suffering losses.

In response, Hana Bank expressed its apology to the investors and stated that it accepts the Mediation Committee’s decision.

Hana Bank further stated, "We will actively review acceptance of the Mediation Committee’s decision and do our best to ensure prompt compensation based on this. We will also strive to restore customer trust through proactive follow-up measures in the future."

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