From BigGo Finance · BigGo Finance · · 1m 10s
South Korea's FSS Examines Hana Securities Loan
South Korea's FSS scrutinizes $173.9m loan to Shin Dong-guk amid recovery risks.
In brief
South Korea's FSS scrutinizes $173.9m loan to Shin Dong-guk amid recovery risks. South Korea's Financial Supervisory Service is reviewing Hana Securities' $173.9 million loan to Shin Dong-guk after a court seized Hanmi Science shares worth $7.6 million. Originally reported by BigGo Finance.
FSS Scrutinizes Loan
South Korea's Financial Supervisory Service examines Hana Securities' $173.9 million loan to Shin Dong-guk.
Loan Terms
The loan carries 200% collateral maintenance ratio and 4.45% annual interest rate.
Court Seizure
A court granted provisional seizure of Hanmi Science shares worth $7.6 million held by Shin.
Recovery Risk
Recovery risk mounts after court seized Hanmi Science shares worth $7.6 million.
Capital Markets Act Allegations
Shin allegedly violated Capital Markets Act Article 133, Paragraph 3 by buying shares off-market.
Shin's Defense
Shin argues Article 143, Paragraph 5 of Enforcement Decree allows exceptions for related parties.
Total Borrowing
Shin's total stock-backed borrowing exceeds $378.0 million with loans due in March.
FSS Inspection
FSS plans to convert review into full inspection if legal violations are confirmed.
What it means
South Korea's Financial Supervisory Service is reviewing Hana Securities' $173.9 million loan to Shin Dong-guk after a court seized Hanmi Science shares worth $7.6 million.
