1. Samhwa Savings Bank's article and response(I think it is a very meaningful article related to the Oriental crisis and I explain it for the victims)

Go. Article content

What's the difference between a "footer" and a "wallpaper"?

 

1)Samhwa Savings Bank subordinated bond investors won a 70% verdict in a lawsuit against the savings bank. higher than what subordinated debt investors have received through the Financial Conduct Authority dispute resolution process, which averages 30%. As a result, investors in other failed savings and loan subordinated debt are expected to file a "line of lawsuits". 2)Also, even if you are awarded damages, the amount of money you can get back may vary depending on the bankruptcy foundation's financial situation.

 

3) From February 2011 to April, investors in suspended savings banks received an average of 30% of their principal through the BOK's dispute resolution process. The OCC had awarded 40-42% to investors before the second half of 2009, when savings banks began distributing "core prospectuses," and an average of 20% to investors afterward. This is different from this ruling, which was based on 'incomplete sales'. The ruling was based on a finding that Samhwa Savings Bank had "deceptively" disclosed its securities disclosures and the Bank of International Settlements (BIS) capitalization ratio on its books.

 

4)On the other hand, the BIS dispute resolution process did not look at the manipulation of the BIS capital ratio, but only held the bank responsible for incomplete sales by saying, "Invest in subordinated bonds with higher interest rates because they are like deposits. "When we received the application for dispute resolution, we stated in the application form that we would reserve judgment on the misrepresentation of the BIS ratio or misrepresentation of securities disclosures, and that this part of the dispute could be litigated separately even after the dispute resolution," said Jeong Jun-taek, director of the dispute resolution department at the Financial Supervisory Service. This was because the FSS lacked the legal authority to prove this aspect of the case.

 

2. Answer

 

. The problem is that the Financial Supervisory Service only judges incomplete sales (suitability, misrepresentation, and fraudulent sales), except for those that are difficult to prove in the first place. Incomplete sale is a higher concept that includes [fraudulent sale, Article 49 of the Capital Market Act]. In the above case, the Financial Supervisory Service judged that it is the inherent right of the Financial Supervisory Service to settle disputes over incomplete sales.

 

or. Therefore, if (when) the FSC determines that the goldin the Tongyang case was mis-sold (fraudulent sales), the victim will not be able to sue Tongyang in the future.

 

2. The victims in the above cases received restitution, which was twice as much as the FSA's decision if the cases were tried in court.

 

. As you can see from the article, it was through a trial in court that the victims ultimately received a large payout. In the above case, the Financial Conduct Authority awarded 30%, but the court awarded 70%. That's more than double.

 

The courts do not always award more than twice the amount of the FSA's decision. However, in the case of Hanbyul Law Firm's previous lawsuit against Dongyang Securities (Dongyang Securities), the court awarded higher compensation than the FSA's decision.

- This is a case of a ship fund sold by Dongyang Securities (Dongyang Jonggeum), and the victim was represented by Hanbyul Law Firm (Limited) and Dongyang Securities was represented by Baron Law Firm.

 

B. (Additional) Articles and Answers to the Above Case (1) Article: Originally, subordinated bonds are effectively 'useless' because creditors can only exercise their rights after paying off all other bonds if the issuing entity goes bankrupt, but it is a different story when there is a court ruling. If the court recognizes the savings bank's wrongdoing and orders it to pay damages, the bonds become "damages bonds" and can be repaid on the same basis as other creditors. In exchange, senior creditors get less money back."

 

(2) Answer: As you can see from the article above, the power of a quick court decision can be very powerful.

 

3.

It is up to the victims to decide whether or not they want to pursue a lawsuit. They can choose to take the part of the recovery they receive and be done with it, or they can choose to take the decision of the Financial Supervisory Service and be done with it. However, the Korean judicial system and capital market laws have opened the way for victims to receive compensation through lawsuits, and many victims have received compensation through lawsuits. The Samhwa Savings Bank case is a good example of this.

 

2014. 1. 1.

법무법인(유한)한별

Kang Rae Hyuk, Sang Young KIM