Regarding the Hong Kong Hang Seng Index (H Index) stock-linked securities (ELS) incident, which resulted in trillions of losses, Financial Services Commission Chairman Kim Joo-hyun said on the 12th, “Once things are resolved to some extent, we will collect opinions from relevant organizations and announce a plan to improve the system as soon as possible.” .
Chairman Kim said at a briefing after an event to implement rapid credit recovery support for low-income small business owners held at the Korea Federation of Banks Bank Hall on this day, “If you look at the test results, there is a need to supplement consumer protection laws and standards made in the past, and it is not a matter of law, but a matter of law.” “There are issues with behavior, practices, and internal control, and they need to be looked at from multiple angles,” he said.
When asked if he was considering banning the sale of high-risk products in banks, he said, “At this stage, we are not at the stage where we can talk about banning sales through banking channels.” He added, “There is no need to collect opinions comprehensively and then improve the system.” “I think there is,” he answered.
In response to the point that ‘banks are passive in compensation due to concerns about breach of trust,’ he said, “They will take care of it themselves,” and added, “The Financial Supervisory Service is saying that they will create their own reasonable standards and handle it based on this, but I honestly don’t know why the issue of breach of trust is coming up.” He added, “There is a clear breach of trust issue that the authorities can sympathize with, and if there is something to fix, we will fix it, but I don’t understand why the breach of trust issue is coming up in the current situation.”
Regarding the compensation plan presented by the Financial Supervisory Service the day before, Chairman Kim said, “I think we really thought a lot about it,” and added, “From the perspective of investors, there may be complaints, and from the perspective of those who did not invest, there may be complaints again, but for both of them, there may be complaints. “I got the feeling that the Financial Supervisory Service put a lot of thought into various legal aspects in order to harmonize profits in its own way,” he said.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.