Seoul High Court Clears Hana Financial Group Chairman Ham Young-joo in DLF Mis-Selling Case

The Reader Wall Google News

Seoul High Court Absolves Hana Financial Group’s Ham Young-joo in High-risk DLF Case

Our sources reveal that the Seoul High Court has dismissed the previous verbal warning issued to Hana Financial Group Chairman Ham Young-joo by the Financial Supervisory Service (FSS). This warning was issued over allegations related to the unfair selling of high-risk derivative-linked funds (DLFs) at Hana Bank. During this time, Ham held the position of CEO. This development marks a significant turnaround from what transpired during the latter half of the 2010s.

The Court’s Findings

The appellate court’s decision contradicts the lower court’s assessment recorded in March 2022. The lower court’s findings implicated Ham for failure to guarantee sufficient internal regulations that would preclude the mis-selling of these contentious funds at Hana Bank. Moreover, the Seoul High Court concluded that Ham could not be held culpable for lacunae in the bank’s regulatory oversight.

As per the Financial Supervisory Service’s sanctions, a verbal warning could potentially forbid individuals from obtaining new roles in the finance industry for a duration of three years. However, this verdict determined that Ham would not be subject to such restrictions.

Reactions to the Court’s Decision

In response to this verdict, representatives of Hana Financial Group expressed their gratitude for the court’s decision. They showed their commitment towards using this DLF case as an opportunity for enhancing their internal control systems and ultimately improving their service to customers.

About the DLF Case

The DLFs at the center of this controversy were designed with the intention of producing high returns for investors if the interest rates of major economies stayed above a designated level. However, instead of realizing this goal, these funds resulted in substantial financial losses for investors due to a dip in the interest rates. This unexpected turn of events caused a stir within the industry and invited regulatory scrutiny.


  • Through this ruling, the Seoul High Court has brought a new perspective to the controversial DLF case involving Ham Young-joo and Hana Bank.
  • It has set a precedent implying that added caution is necessary while designing and offering high-risk financial products.

  • Furthermore, it informs banks that they share an inescapable responsibility to tighten their internal control systems to prevent any potential mismanagement.

  • Fulfilling this responsibility will not only protect the interests of their customers but will also defend the integrity of the bank and its management.

Anna Parker

Anna Parker, a distinguished author in the realm of business literature, brings a wealth of expertise to ReaderWall. With a profound understanding of corporate dynamics, Parker's insightful works offer invaluable insights into leadership, strategy, and organizational excellence. Explore her thought-provoking writings on ReaderWall's Business category and elevate your understanding of the business world.