2024-01-13 20:45:06
“I said there was a small possibility of a 35% decline in the index… I lost 30% of the money I was going to spend after retirement” The principal amount from the Hong Kong H Index (Hang Seng China Enterprise Index) underlying equity-linked securities (ELS) sold in the banking sector exceeded 100 billion won in just about 10 days this year. As losses are confirmed one after another, related consumer complaints are pouring in.
According to the financial sector on the 14th, the total number of complaints related to Hong Kong ELS filed with the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) from last year to the 12th of this year amounts to 1,410.
In particular, 518 of these are complaints filed this year, and as the loss of more than half of the principal has been confirmed in some cases with the recent maturity, the number of complaints and protests is rapidly increasing in proportion to this.
One of the five major banks received a complaint from Mr. A, a retired office worker in his 60s, who invested 50 million won in ELS products with the H index as the underlying asset, but received only half of the principal.
According to Mr. A’s complaint, in early 2021, in an ultra-low interest rate situation where the deposit interest rate was around 1%, the bank recommended signing up for the Hong Kong ELS product.
At the time, a bank employee said, “We have never had a loss in the past 10 years,” and “It is a good product with a return rate of 3 to 4 times the deposit interest rate, and it is very unlikely that the stable European, Hong Kong, and American stock markets will go down to -35%.” Mr. A claims that he explained it.
Mr. A appealed, “I only found out now, three years later, that this is a product that incurs a loss if any of the three indices falls below -35%,” and added, “It would be nice to compensate for the loss even though it has not yet been repaid.”
The number of cases claiming similar investment damages in the online community of Hong Kong ELS subscribers has increased significantly this year.
Mr. B said that he visited to re-deposit a term deposit ahead of retirement in 2021 and invested 60 million won in Hong Kong ELS products after receiving a recommendation from the banker in charge.
Mr. B said, “I signed up because the interest rate was higher than the deposit, but a year ago I received a text message saying that the principal amount had been reduced to around 40 million won,” and “The maturity date is in March of this year, but I lost about 30% of the money I planned to use after retirement.” raised.
Regarding the large losses in the Hong Kong H Index ELS, the financial authorities are expected to come up with measures by March at the latest.
Lee Bok-hyeon, head of the Financial Supervisory Service, said on the 9th, “Because it is a financial investment product, not a deposit, (investors) have to take responsibility under the investor’s self-responsibility principle,” but added, “Separate from the issue of responsibility, there are improvements to be made in terms of loss burden and arrangement of liability.” There is no room for it to happen.
“We will quickly carry out the necessary work around February or March,” he said.
/yunhap news
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