5 securities firms slapped with 3 bln-won fine over mis-selling of HK-tied derivatives

▲ This undated file photo shows a street in Seoul's Yeouido, known as South Korea's financial district. (Yonhap)

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5 securities firms slapped with 3 bln-won fine over mis-selling of HK-tied derivatives

SEOUL, Feb. 1 (Yonhap) -- Five securities firms have been slapped a combined 3 billion won (US$2.1 million) in penalties over their mis-selling of equity-linked securities (ELS) products tracking Hong Kong's H Index, the financial watchdog said Sunday.

Under the measure, KB Securities Co. was imposed a 1.7 trillion-won fine last month over violating a recording procedure and failing to notify investment risk to customers, according to a regulatory filing by the Financial Supervisory Service.

NH Investment & Securities Co., Mirae Asset Securities Co., Korea Investment & Securities Co. and Samsung Securities Co. were also fined over similar charges.

ELS refers to hybrid securities whose returns are linked to the performance of underlying equities, including a stock index.

In early 2024, HK-tied ELS buyers suffered massive losses as Hong Kong's H index plunged.

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