Korean regulator likely to probe issuers of rate-linked products

Mis-selling enquiry may extend to structuring banks as global rates plunge threatens retail notes

IBK-Securities-headquarters
IBK Securities is one of the houses said to have issued many of the interest rate products

An investigation into the mis-selling of interest rate-linked products in South Korea is likely to be extended to examine the role of structurers and issuers, as retail-dominated investments in the instruments stand to be wiped out amid plummeting global rates.

Private banks Woori Bank and KEB Hana are alleged to have mis-sold investment products tied to the yields on the Treasury bonds of Germany, the UK and the US. The products have come under scrutiny after August’s nosedive in bond yields

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