EL7.AI
GeneralMedium•4 November 2026•
1 min read

South Korea Imposes Record 374.6 Billion Won Fines on 13 Firms Over ELS Misselling

Key Facts

1South Korea's Financial Services Commission imposed total fines of 374.632 billion won on 13 financial institutions.
2The sanctions relate to violations of the Financial Consumer Protection Act regarding the misselling of Hong Kong H-share index equity-linked securities.

South Korea's Financial Services Commission imposed total fines of 374.632 billion won on 13 financial institutions. Chosunbiz reported that the sanctions relate to violations of the Financial Consumer Protection Act regarding the misselling of Hong Kong H-share index equity-linked securities, affecting major entities including KB Kookmin Bank, Shinhan Bank, Mirae Asset Securities, and Samsung Securities.

The regulator found that the institutions breached suitability principles and failed to explain risks to consumers, specifically omitting risk rating cautions for volatile index-linked products. These record fines follow recent economic data showing South Korea's annual inflation rate at 2.8% on November 2, 2026, while the Manufacturing PMI stood at 51.3 on the same date.