Woori sus­pends sales of ul­tra-high-risk prod­ucts

The Korea Times - - FINANCE - By Park Jae-hyuk [email protected]­re­atimes.co.kr

Woori Bank will not sell ul­tra­high-risk fi­nan­cial prod­ucts, such as de­riv­a­tive-linked funds (DLF) or eq­uity-linked funds, un­til it fin­ishes over­haul­ing its as­set man­age­ment sys­tem, the com­pany said Wednesday.

This comes as one of a se­ries of fol­low-up mea­sures to avoid the re­cur­rence of the mis-sell­ing of high-risk prod­ucts.

Apol­o­giz­ing again to its cus­tomers who suf­fered huge losses for its mis-sell­ing of DLF op­tions, the lender promised it would re­form its as­set man­age­ment sys­tem to pri­or­i­tize cus­tomer sat­is­fac­tion over profit.

It also said it will make ev­ery ef­fort to com­pen­sate cus­tomers as soon as pos­si­ble.

“For the suc­cess­ful re­form of our as­set man­age­ment sys­tem and our trans­for­ma­tion into a cus­tomer-ori­ented cor­po­rate cul­ture, our man­age­ment and work­ers will try hard to be rec­og­nized for this by our cus­tomers,” the bank said.

Its re­form plan in­cludes a re­vi­sion of em­ployee eval­u­a­tion cri­te­ria mea­sured by key per­for­mance in­di­ca­tors (KPIs).

Woori said it will not use KPIs in eval­u­at­ing em­ploy­ees in the fourth quar­ter and will come up with new eval­u­a­tion cri­te­ria for sus­tain­able growth.

The bank also is con­sid­er­ing al­low­ing a cool­ing-off pe­riod, dur­ing which cus­tomers can choose to can­cel a pur­chase.

The cool­ing-off pe­riod for fi­nan­cial con­sumers was pro­posed dur­ing a Na­tional As­sem­bly au­dit of the Fi­nan­cial Su­per­vi­sory Ser­vice (FSS), Oct. 8, and FSS Gov­er­nor Yoon Sukheun re­sponded that this would be a good idea.

Rep. Kim Byung-wook of the rul­ing Demo­cratic Party of Korea wel­comed the Woori de­ci­sion and urged all com­mer­cial banks here to in­tro­duce a cool­ing-off pe­riod.

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