The Seoul Central District Court dismissed the Fisheries Industries' demand against Woori Bank and other banks for compensation over the financial losses resulting from KIKO contracts, said court officials.

The court thus ordered the Fisheries Industries to pay the due 316 million won (US$270,085) to the banks, as was agreed upon.

"KIKO contracts fundamentally include possibilities of danger resulting from currency fluctuations," ruled the court.

"Companies may risk losses under high currency changes just as well as they may profit when the fluctuation range is low."

The court also denied the company's claim that the bank margins from KIKO products were excessive.

"The margin rates were individually negotiated in advance by both parties and the amount may not be seen as excessive, compared to other financial derivatives," said the court in its ruling.

The banks also provided sufficient explanation on the possible risks that may occur when the won currency depreciates against the US dollar, said officials.

"The banks may not be held responsible for the results of the unexpected worldwide financial plunge, which led to the depreciation of the won," said the court.

The turnover for derivatives trading from January to September last year totaled 36,000 trillion won, a 21.2 per cent plunge from the 45,000 trillion won recorded the previous year.