This undated file photo shows a street in Seoul's Yeouido, known as South Korea's financial district. (Yonhap)
This undated file photo shows a street in Seoul's Yeouido, known as South Korea's financial district. (Yonhap)

Five securities firms have been slapped a combined 3 billion won ($2.1 million) in penalties over their mis-selling of equity-linked securities products tracking Hong Kong's H Index, the financial watchdog said Sunday.

Under the measure, KB Securities was imposed a 1.7 trillion-won fine last month over violating a recording procedure and failing to notify investment risk to customers, according to a regulatory filing by the Financial Supervisory Service.

NH Investment & Securities, Mirae Asset Securities, Korea Investment & Securities and Samsung Securities were also fined over similar charges.

ELS refers to hybrid securities whose returns are linked to the performance of underlying equities, including a stock index.

In early 2024, HK-tied ELS buyers suffered massive losses as Hong Kong's H index plunged. (Yonhap)