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[Alpha Biz=(Chicago) Reporter Paul Lee] The Financial Supervisory Service will begin additional on-site inspections of major ELS vendors related to the Hong Kong H Index from the 16th.
The Financial Supervisory Service has been conducting on-site inspections of 12 major vendors since the 8th of last month, and has decided to conduct further inspections as more damages have been received mainly by investors who have recently confirmed losses. The Financial Supervisory Service plans to draw up guidelines for damages by setting compensation standards after completing additional inspections.
On the 2nd, the FSS completed the first on-site inspection of 12 major vendors that had been in progress since the 8th of last month. On-site inspections included five banks, including KB Kookmin Bank, Shinhan, Hana, NH Nonghyup, and SC First Bank, Korea Investment & Securities and seven securities firms, including Mirae Asset, Samsung, KB, NH Investment, Kiwoom and Shinhan Investment & Securities. Financial authorities have focused on securing data to prove the seller's incomplete sales based on complaints received.
The Financial Supervisory Service will send an inspection break around the Lunar New Year holiday and continue its second on-site inspection of ELS vendors, including Kookmin Bank, from the 16th.
The balance of ELS sales in the Hong Kong H Index, identified by the FSS, is KRW 19.3 trillion. The maturity of KRW 15.4 trillion, or 79.6% of the total balance, will arrive this year. The Hong Kong H index, which surpassed the 12,000 mark in February 2021, has now fallen below the 5,300 mark. The loss has been confirmed in earnest since the beginning of this year, and the fixed losses incurred in January alone by the five major commercial banks (KB Kookmin, Shinhan, Hana, Nonghyup, and Woori) amounted to KRW 310 billion.
The problem lies in the fact that the loss is expected to be greater in the future. Assuming that the Hong Kong H Index remains at its current level (5,300), the five major commercial banks are expected to lose 690 billion won this month. The loss is expected to increase to around KRW 700 billion in March and KRW 1.2 trillion in April.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
