Woori Bank to Return Full Investment Amount in Heritage Fund
Acceptance of the Decision by the Financial Supervisory Service Dispute Mediation Committee
[Asia Economy Reporter Kwon Hyun-ji] Woori Bank announced on the 17th that it has decided to accept the Financial Supervisory Service's (FSS) decision to refund the full principal amount to investors in the German Heritage Derivative-Linked Securities (DLS) fund.
Woori Bank held an extraordinary board meeting on the same day and resolved this matter. In November last year, the FSS's Dispute Mediation Committee ruled that six fund distributors, including Woori Bank, must cancel contracts due to 'mistaken contracts' and refund the full investment amount.
The German Heritage DLS is structured so that a local developer purchases and develops real estate designated as cultural heritage by the German government to generate profits. Domestically, Shinhan Investment Corp., NH Investment & Securities, Hyundai Motor Securities, SK Securities, Hana Bank, and Woori Bank sold approximately 483.5 billion KRW worth of this fund from April 2017 to December 2018. The FSS judged that these distributors caused investor mistakes by explaining that the local developer's business history, creditworthiness, and financial status were excellent and that the project was feasible as planned.
Previously, Hana Bank, Shinhan Investment Corp., and NH Investment & Securities stated that they would refund the full investment amount to investors but could not fully accept the FSS's decision as is.
Woori Bank also plans to conduct voluntary mediation for investors subscribed to the 'Jentu DLS,' expressing its position to respect the financial authorities' consumer protection policies.
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A Woori Bank official said, "We accepted the dispute mediation decision with the highest priority on protecting financial consumers and restoring trust," adding, "We will continue to respect the financial authorities' consumer protection policies and faithfully fulfill the bank's social responsibilities."
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