EL7.AI
BondsMedium•11 November 2026•
2 min read

KB Securities Fined 332.178 Billion Won in Penalties Against 15 South Korean Financial Firms

Key Facts

1KB Securities was fined about 332.178 billion won.
2NH Investment & Securities was fined about 242.785 billion won.
3Mirae Asset Securities was fined about 214.83 billion won.
4Sales used to calculate the fine were estimated at about 54 trillion won, with a 4.5% rate and a uniform 30% reduction.

South Korea’s Fair Trade Commission fined 15 financial firms over violations related to government bond auctions, with KB Securities receiving the largest penalty at 332.178 billion won, Aju Press reported, citing a decision dated November 11, 2026. NH Investment & Securities ranked next, with a fine of 242.785 billion won. Mirae Asset Securities was fined about 214.83 billion won. The figures show the variation in penalties among the three largest firms covered by the decision. The commission said the violations restricted competition and artificially raised winning yields.

The commission calculated the penalties based on sales linked to the case of about 54 trillion won, according to the report. It used the value of government bond awards as the basis for the calculation rather than operating revenue, which the firms said should be used. The commission applied a penalty rate of 4.5% to the calculation basis. It then reduced the fines by a uniform 30%. The report said the commission took into account the specific characteristics of the government bond market and the scale of illicit gains when determining the reduction.

The commission linked the impact of the violations to the mechanism for competing on winning yields, but did not disclose a figure for the increase in yields or the Treasury’s loss. This means the decision described the regulatory impact without quantifying its financial cost. Separately, as background on the labor market, South Korea’s overall unemployment rate stood at 2.0% in October 2026, down 0.2 percentage points year over year. The seasonally adjusted rate was 2.5%, down 0.1 percentage points from the previous month. The employment rate for people aged 15 to 64 was 70.4%, up 0.3 percentage points year over year.

South Korea’s Ministry of Economy and Finance had said in an earlier statement that it would consider measures concerning primary dealers after the competition commission issued its final decision. The ministry added that its plan would take into account the potential impact on the government bond market. This came before a decision on the collusion issue and the level of penalties, according to the statement published via Korea.kr. After the decision, the ministry said it would consider its response based on those considerations. The statement did not specify when further measures would be announced.