A brokerage firm in South Korea paid as much as 1,000 shares in dividends by mistake instead of 1,000 Korean won (0.93 in USD). This happened after a computational error last Friday which revealed a big loophole in the stock trading system of South Korea.
The Financial Services Commission vice chairman Kim Yong-beom already apologized for causing a nationwide concern, adding that the government is already taking the issue seriously by delivering countermeasures to bring back the confidence of the market.
Meanwhile, the Financial Supervisory Service will start observing any possible internal flaws at Samsung Securities, which will begin this Monday. Officials said on the previous day that South Korea’s biggest brokerage will inspect the accounting management of all brokerages across the nation. Authorities will also look into trades that are linked to futures.
As a result, the shares Samsung Securities immensely dropped last Friday. The firm extended its losses on the day before when it fluctuated as low as 11 percent at 35,150 won. It finished Friday’s session 3.6 percent down on shares at 38,350 won. Officials from the company released a statement that suggested the ones who sold off the shares that altered the quantity using buybacks. This is in light of Samsung Securities guidance.
The Apology
CEO of Samsung Securities Koo Sung-hoon issued an apology to all the firm’s investors. On behalf of the brokerage, he stated that employees made a serious mistake of depositing stocks instead of dividends. Koo Sung-hoon also mentioned some of their workers took advantage of this happening by selling stocks that dragged the shares prices of Samsung Securities.