[Alpha Biz=(Chicago) Reporter Paul Lee] Woori Bank has recently suffered nearly 100 billion won in valuation losses due to the wrong operation of derivatives.

According to the financial sector, Woori Bank's trading department recently recognized valuation losses caused by market price fluctuations in ELS product-related derivatives and revised them, reflecting 96.2 billion won in accounting losses.

Woori Bank reported to the FSS in June, and the Financial Supervisory Service ordered its own inspection.

"The price evaluation is conducted through a kind of evaluation model, and there were some errors in the process," a Financial Supervisory Service official said. "The amount increased because we recognized the problem all at once."

As banks have hedged against derivatives, the Financial Supervisory Service explains that the valuation losses are up to banks, not customers.

However, Woori Bank's confidence in the operation of derivatives is expected to be inevitable as it has been confirmed that the hedge position evaluation method has been operated in the wrong way for a long time.

 

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