South Korea's Financial Supervisory Service confirmed it recovered "lost" documents related to KEB Hana Bank's sales of derivative-linked funds after conducting digital forensic audit of the bank's systems, The Korea Times reported Oct. 13.
The regulator claimed the bank erased the data around the time it announced plans to inspect the alleged misselling of derivative-linked funds, which caused huge losses for investors. The FSS could take action against the bank if the deletion was found to have disrupted its inspection, the publication added, citing an official at the regulator. KEB Hana claimed it deleted the "data for internal review."
The regulator's inspection showed that KEB Hana, alongside Woori Bank, sold 795 billion won worth of derivative-linked fund options to 3,243 investors. The inspection also found that the two banks continued to sell such options despite the higher chances of losses for investors, based on the drop in interest rates of underlying assets, such as German treasury bonds, the outlet reported.
As of Oct. 11, US$1 was equivalent to 1,178.01 South Korean won.