Woori and Hana Followed by NH Nonghyup Holding 'ELS Compensation' Board Meeting on the 28th

Woori Bank to Present Agenda at Board Meeting on 22nd
Hana Bank to Discuss at Board Meeting on 27th
Shinhan Bank Discusses Current Issues at Briefing... Plans Additional Board Meeting

[Image source=Yonhap News]

Following Woori Bank and Hana Bank, NH Nonghyup Bank will hold an extraordinary board meeting to discuss a voluntary compensation plan for Hong Kong H-Share Index (Hang Seng China Enterprises Index·HSCEI) equity-linked securities (ELS).

On the 22nd, NH Nonghyup Bank announced that it will hold an extraordinary board meeting on the 28th to discuss compensation for ELS. Previously, Woori Bank and Hana Bank held related board meetings and stated that they would discuss voluntary compensation plans for ELS.

Woori Bank will hold an extraordinary board meeting on the same day to discuss the voluntary compensation plan for Hong Kong ELS. At the board meeting, Woori Bank plans to report the expected compensation scale based on the dispute resolution proposal presented by the Financial Supervisory Service (FSS) on the 11th and discuss the voluntary compensation plan. If a resolution on the voluntary compensation agenda is made at the board meeting, Woori Financial Group is likely to announce the voluntary compensation plan first among major commercial banks immediately after its shareholders' meeting. Woori Bank's sales volume is estimated at 41.3 billion KRW, and the expected compensation amount is projected to be less than 10 billion KRW.

Hana Bank, with sales reaching 2 trillion KRW, will hold a board meeting on the 27th to discuss the voluntary compensation plan. Shinhan Bank reportedly shared information related to voluntary compensation at a board meeting on the 21st. Shinhan Bank plans to hold an additional extraordinary board meeting with the voluntary compensation plan as an agenda item to continue discussions. Industry observers expect the average compensation ratio for these two banks to be around 30-40%.

However, KB Kookmin Bank, which sold the most Hong Kong ELS, is in a difficult position to hold an early board meeting regarding the voluntary compensation plan. Since the sales volume exceeds 7 trillion KRW, the voluntary compensation amount could reach several hundred billion KRW according to FSS standards, making it challenging to hastily submit the matter to the board. A KB Kookmin Bank official explained, "We are currently conducting a full investigation and plan to discuss the compensation procedures based on it."

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