South Korea · Country watch

Korean Banks Fined, Crypto Tax Delay Proposed

South Korea fines banks and brokers for mis-selling derivatives; ruling party proposes delaying crypto tax implementation.

Florent Kalfon · 4 November 2026 · 4 articles read

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Business conditions in South Korea remain stable with significant fines imposed on banks for mis-selling derivatives and a proposed delay in cryptocurrency tax implementation. These developments impact the finance and technology sectors, but do not indicate a major shift in the overall business environment.

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In this briefing Financial Services Commission · KB Kookmin Bank · Shinhan Bank · Korea Automobile Importers & Distributors Association · Tesla · Kim Min-seok · Democratic Party of Korea

Regulation

Finance

South Korea fines banks $280 million for ELS mis-selling

South Korea's financial regulator imposed penalties totaling 374.6 billion won ($280 million) on seven banks and six securities firms for mis-selling equity-linked securities (ELS) tied to Hong Kong's H Index, according to The Korea Herald. The Financial Services Commission reduced the fines from an initial proposal of 1.4 trillion won after considering investor compensation and legal factors. The banks involved include KB Kookmin Bank, Shinhan Bank, Hana Bank, NH Nonghyup, and SC Korea.

Impact Banks and securities firms face financial penalties affecting their operations and compliance costs.

Sources: The Korea Herald ↗, Korea.net ↗

Trade

Automotive

Imported vehicle sales in Korea jump 29.3% in October

Sales of imported vehicles in South Korea increased by 29.3% year-on-year in October, driven by strong demand for electric vehicles, according to the Korea Automobile Importers & Distributors Association (KAIDA). New registrations rose to 31,117 units from 24,064 a year earlier. The top-selling imported models included the Tesla Model Y, Mercedes-Benz E-Class, and BMW 5 Series.

Impact Automotive importers benefit from increased sales, particularly in the electric vehicle segment.

Sources: Korea.net ↗

Politics

Finance
Technology

Ruling party proposes delay in cryptocurrency tax

The ruling Democratic Party of Korea proposed delaying the implementation of cryptocurrency taxation, initially set for next year, according to Korea.net. Party leader Kim Min-seok stated that the delay would give businesses and investors time to adjust to the new tax scheme. The proposal reflects concerns about the readiness of the market and the need for further preparation.

Impact Cryptocurrency investors and businesses gain more time to adapt to upcoming tax changes, affecting financial planning.

Sources: Korea.net ↗

Nothing significant reported today in Disruption · Internal tension · Safety & health · Companies · Markets.