After a lengthy legal battle, Hana Financial Group Chairman Ham Young-joo has been cleared of regulatory punishment related to internal control failure in the misselling of derivatives-linked funds. The Supreme Court recently upheld the appellate court's decision to overturn major disciplinary actions against Ham, confirming the lower court's ruling in favor of him, former Hana Card President Chang Kyung-hoon, and Hana Bank in their lawsuit against financial authorities. This legal development follows a 2019 incident in which a global drop in bond yields caused losses in high-risk derivative-linked financial products, leading to criticism of commercial banks for improper sales practices. The severe sanctions against Ham and Chang have been canceled, potentially increasing Chairman Ham's chances of reappointment. With the legal risk resolved, the net profit for Hana Financial Group in the first half of the year was reported to be 2.69 trillion won, a 2.4 percent increase compared to the previous year. However, the banking division's net profit fell by 4.8 percent on-year, mainly due to increased one-time expenses for equity-linked securities misselling compensation and losses from currency appreciation.
After a lengthy legal battle, Hana Financial Group Chairman Ham Young-joo has been cleared of regulatory punishment related to internal control failure in the misselling of derivatives-linked funds. The Supreme Court recently upheld the appellate court's decision to overturn major disciplinary actions against Ham, confirming the lower court's ruling in favor of him, former Hana Card President Chang Kyung-hoon, and Hana Bank in their lawsuit against financial authorities. This legal development follows a 2019 incident in which a global drop in bond yields caused losses in high-risk derivative-linked financial products, leading to criticism of commercial banks for improper sales practices. The severe sanctions against Ham and Chang have been canceled, potentially increasing Chairman Ham's chances of reappointment. With the legal risk resolved, the net profit for Hana Financial Group in the first half of the year was reported to be 2.69 trillion won, a 2.4 percent increase compared to the previous year. However, the banking division's net profit fell by 4.8 percent on-year, mainly due to increased one-time expenses for equity-linked securities misselling compensation and losses from currency appreciation.