Samsung Securities shares extend fall on ‘fat finger’ error
[THE INVESTOR] Shares of Samsung Securities continued to dip further on April 10, following the brokerage’s accidental dividend payout that has fueled a public outcry.
Shares closed at 35,550 won (US$33.42), down 4.4 percent from the previous day. The loss has widened from the previous two trading days that dropped around 3 percent.
In the wake of the incident, the National Pension Service said it has ceased direct stock trading with Samsung Securities.
The brokerage has been under fire over its “fat finger” error where it accidentally issued non-existent 2.8 billion stocks to employees on April 6, instead of paying 2.8 billion won in cash dividends under its stock ownership plan. Despite being issued a warning, some 16 employees immediately sold off 5 million shares on the market, worth about 200 billion won.
Earlier on the day, Kim Ki-sik, head of the Financial Supervisory Service, strongly condemned the incident, calling it a “company-wide systematic problem,” and should not be regarded as a single individual’s mistake. He said the regulators will launch a probe into overall stock market systems, following the inspection of Samsung Securities.
Samsung Securities CEO Koo Sung-hoon repeatedly apologized, adding it will take measures to compensate investors without a set time limit. The brokerage will announce the compensation plan as early as today or tomorrow, he added.
By Ahn Sung-mi (email@example.com)