Deutsche S.Korean units to pay $24 million damages for 2010 market plunge (updated)
25/11/2015 03:43
(Adds details, background)
SEOUL, Nov 25 (Reuters) - A South Korean court has finalised
a mediation settlement for two Deutsche Bank AG DBKGn.DE South
Korean units to pay about 28 billion won ($24.5 million) in
damages to five local financial firms in a market manipulation
case, a judge said on Wednesday.
The five South Korean financial firms claimed damages after
share prices plummeted when Deutsche Bank units sold about 2.4
trillion won worth of stocks on the Seoul bourse just before the
market closed on November 11, 2010, Lim Kwang-ho, a judge in the
Seoul Central District Court told Reuters on Wednesday.
South Korea's top financial regulator in April 2011
suspended some operations of Deutsche Bank's local brokerage
unit for six months after ruling that the bank manipulated the
stock market.
Damages will be paid to KB Insurance Co Ltd 002550.KS ,
Meritz Fire & Marine Insurance Co Ltd 000060.KS , Heungkuk Fire
& Marine Insurance Co Ltd 000540.KS , Shinhan Life Insurance Co
Ltd, and Heungkuk Life Insurance Co Ltd.
The 28.1 billion won award is about 80 percent of what the
five firms claimed. In all, South Korean financial firms have
sought about 280 billion won in damages, the Korea Economic
Daily reported earlier on Wednesday, citing the court.
Others seeking compensation include Korea Deposit Insurance
Corp and Hana Financial Investment Co Ltd, the Korean Economic
Daily said, citing the court.
A Deutsche Bank spokeswoman did not have immediate comment.
In March, the German bank said in its annual report that it
faced potential damages of about 250 million euros ($268
million) in the case. urn:newsml:reuters.com:*:nL6N0WM4MY
($1 = 1,145.6000 won)
($1 = 0.9373 euros)
(Reporting by Joyce Lee; Editing by Tony Munroe and Eric
Meijer)
((jungyoon.lee@thomsonreuters.com; +82 2 3704 5609; Reuters
Messaging: jungyoon.lee.thomsonreuters.com@reuters.net))
Keywords: DEUTSCHE SOUTHKOREA/DAMAGES