The Financial Supervisory Service (FSS) has announced a thorough investigation into the recent loss related to exchange-traded fund (ETF) futures trading at Shinhan Investment Corp.
On the 14th, at a meeting with senior officials held at the Seoul Government Complex, Kim Byung-hwan, Chairman of the Financial Services Commission (FSC), stated, “I urge the FSS to conduct a thorough inspection and investigation regarding the incident at Shinhan Investment Corp., which resulted in a loss of approximately 130 billion KRW from ETF futures trading.”
Chairman Kim expressed his concern, saying, “The ongoing occurrences of financial accidents, such as embezzlement and fraudulent loans, in the financial sector are very worrying,” and requested strict measures in response to the loss incident at Shinhan Investment Corp.
On the same day, the FSS dispatched an inspection team to Shinhan Investment Corp. to begin an on-site investigation.
Shinhan Investment Corp. had disclosed on the 11th that an ETF liquidity provider (LP) had engaged in futures trading on the market contrary to its original purpose, resulting in excessive losses.
It was also revealed that the transaction had been falsely registered as a swap transaction, hiding the fact of the loss.
Shinhan Investment Corp. detected the issue through its internal control system and, after conducting an immediate internal investigation, reported the matter to the regulatory authorities.
Meanwhile, Chairman Kim called for proactive measures in response to the financial risk factors posed by the shift to a lower interest rate environment across the economy.
He also urged the thorough preparation of financial policies, such as the Personal Debt Protection Act, the digitalization of medical indemnity insurance claims, and the service allowing individuals to transfer their retirement pensions without obstacles.
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Shinhan Investment Corp. Suffers 130 Billion KRW Loss from ETF Futures Trading… Financial Authorities Announce Thorough Invest
The Financial Supervisory Service (FSS) has announced a thorough investigation into the recent loss related to exchange-traded fund (ETF) futures trading at Sh
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