South Korean regulators set massive fines for banks over derivative sales misconduct
South Korea is set to fine local banks nearly $700 million each for misconduct. The decision follows a two-year probe into equity-linked derivative sales.
Insights:
South Korea's Financial Supervisory Service (FSS) announced today, February 12, 2026, that it will impose fines of approximately 1 trillion won each on local banks following findings of misconduct. The penalties are linked to the sales of Hong Kong equity-linked derivatives, a matter that has been under intense regulatory scrutiny in South Korea 
KR.
KR.The decision by the FSS follows extensive investigations into the banking sector that date back to March 2024. These probes identified significant wrongdoing in how the financial products, tied to indices in Hong Kong 
HK, were marketed and sold to investors. Major financial institutions, including KB Financial Group Inc. , Shinhan Financial Group Co., Ltd. , and Hana Financial Group Inc. , are among the local banks affected by the regulatory findings.
HK, were marketed and sold to investors. Major financial institutions, including KB Financial Group Inc. , Shinhan Financial Group Co., Ltd. , and Hana Financial Group Inc. , are among the local banks affected by the regulatory findings.
