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Photo courtesy of Korea Investment & Securities |
[Alpha Biz= Paul Lee] Korea Investment & Securities (KIS) has confirmed voluntary compensation for 458 cases of mis-selling tied to a Belgian real estate fund, according to data from the Financial Supervisory Service (FSS) and Rep. Lee In-young. These cases account for 24% of the fund’s 1,897 sales.
Of 33.9 billion won in related complaints, 6.07 billion won will be compensated. The fund, sold in 2019 by KIS, KB Kookmin Bank, and Woori Bank, ultimately resulted in near-total losses due to rising interest rates and a downturn in Europe’s property market.
KIS set compensation rates between 30–60%, adjustable up to 80% depending on investor circumstances. Most confirmed cases fall in the 30–45% range.
KB Kookmin Bank is also preparing voluntary compensation. Meanwhile, the FSS has received 372 dispute applications, with about half settled or under review. Regulators plan to strengthen oversight of high-risk overseas real estate funds.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
