Securities Related Class Action for “Hanwha Smart ELS No.10”

   Hit. 254


ELS (equity linked securities) sold to 437 investors for 6.8 billion won by Hanwha Securities on April 2008, dropped under the principal value on the maturity date, April 22, 2009. The stock price plummeted as a great bulk of the common stocks of SK (the underlying asset of the ELS) poured into the market. At that time, a suspicious rumor was raised that there had been an unfair trade concerning the Hanwha Smart ELS. According to a survey of the financial supervisory authorities, last December, Royal Bank of Canada (RBC), a back to back counterpart of the above mentioned fund, was reported to have pulled down the prices of the common stocks of SK by way of numerous sale orders until the date of maturity.\n\nIn January 7, 2010, Hannuri Law filed a class action for 3.2 billion won against RBC to the Seoul Central District Court, representing two investors who had invested in the Hanwha Smart ELS No.10. 


Distribution of Compensation

Distribution of compensation of the securities class action suit has been finalized during the period of May 29th to May 30th of 2018. For those who have reported a right on the case of Korea Investment and Securities issued-ELS no. 289, please let us know should you have any question, as the compensation should be deposited in the bank account specified in the Report of Rights. 


Significance of this Case

As this marks the first win on securities class action suit which has been in enforcement since January 1, 2005, this win demonstrates that class action suit will be able to function as practical remedy in protecting rights and contribute to expanding the horizon of such legal system.