JoongAng Group Vice Chairman Hong Jeong-do leaves Seoul Bankruptcy Court in Seoul’s Seocho District, June 23, after attending hearings on rehabilitation filings by JoongAng Group affiliates.
Joint Press Corps Korea’s financial watchdog has launched inspections into Shinhan Securities and Kiwoom Securities over their distribution of corporate bonds issued by broadcaster JTBC, which is currently under court-led rehabilitation proceedings, industry sources said Thursday.
The Financial Supervisory Service (FSS) is reviewing whether the two brokerages continued underwriting and selling the bonds despite signs of JTBC’s deteriorating financial condition.
It is also examining whether risks were properly disclosed and whether the products were recommended in line with investors’ risk profiles.
The move comes amid rising concerns over potential losses for retail investors following JTBC’s default.
