A South Korean lawmaker has called derivative-linked securities (DLS) ‘fraudulent,’ while urging the regulator to set out improved guidelines to regulate sales as well as the manufacturing of risky products sold to retail investors.
Commissions charged by foreign investment banks on the sales of structured products linked to rates in South Korea amounted at over KRW7.7 billion (US$6.6 million), according to Yoon Kyung Je, a lawmaker of the Democratic Party of Korea also known as the Minjoo Party of Korea. Based on data from the Financial Supervisory Service (FSS), the lawmaker unveiled that JP Morgan raised around KRW 1.7 billion in commissions, while Société Générale’s generated rou