Court says stay-at-home mom must pay for losses on high-risk investments

A citizen is reflected in the glass window of the main office of the Kookmin Bank in Yeouido (Material photo)

Ruling to pay 100 million won to Kookmin Bank for mis-selling funds

(서울=연합뉴스) 이상현 기자 = 서울중앙지법 민소합의21부(수석판사 최승록) 5일 국민은행에서 펀드에서 구입한 이모씨(여.65) and four of her family members who bought a fund from Kookmin Bank on Friday, ruling in partial favor of the plaintiffs in a lawsuit against the bank to "compensate them for investment losses."

The tribunal found that "the bank employee did not fully explain the risks when recommending the purchase of a fund with a high probability of principal loss, and actively recommended a transaction that was excessively risky in light of the buyer's investment situation."

The court limited the bank's liability to 70% of the damages, considering that the victims did not carefully review the content, profit and loss structure, and risk of the investment, and that their wishes were reflected in the selection of the fund. 

The men, who each bought between 15 million and 230 million won ($15 million) of the fund at a branch of Kookmin Bank in 2007, lost between 4 million and 110 million won when they redeemed it the following year.

The victims filed a lawsuit in May last year, claiming that the company "violated its duty to protect investors by selling a product with excessive investment risk to Ms. Lee, a 60-year-old housewife, without properly explaining it to her," and asked the court to "compensate her for 230 million won in losses." 

Attorney Kang Rae-hyuk of Hanbyul Law Firm, who represented the victims, explained, "The ruling is that banks should be held accountable for selling risky products to people who are not suitable for such products. 

hapyry@yna.co.kr