April 25, 2024

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[THE INVESTOR] Samsung Securities, the local brokerage embattled in a dividend payout fiasco, on April 11 said it will give compensation to all shareholders who traded on the day of the mishap, for their financial losses. 

The brokerage set the compensation at 39,800 won (US$37.29), the stock’s highest price on April 6. The package is being extended to all investors who held Samsung Securities shares before 9:35 a.m. and sold the stocks on the day. 

The brokerage said it will also compensate trading fees and taxes.
 
The total amount Samsung Securities will pay is still unclear, but the brokerage said 107 people have filed for compensation as of today. 

The announcement came five days after the brokerage’s accidental dividend payout that fueled a public outcry. 

On April 6, the brokerage 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. 

The brokerage then took 37 minutes to block the trade, resulting in the company’s share price to plummet 12 percent at one point. 

Shares of Samsung Securities have continued to dip since last week, closing at 35,450 won, down 0.28 percent from the previous day.

By Ahn Sung-mi (sahn@heraldcorp.com)