April 19, 2024

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[THE INVESTOR] Samsung Securities on May 8 decided to file criminal charges with the prosecution against employees who sold shares they received by mistake.
 
The measure comes a month after the brokerage came under fire over its “fat finger” error on April 6, where an employee accidentally issued non-existent 2.8 billion stocks to other staff, instead of the pre-scheduled cash dividends of 2.8 billion won (US$2.59 million). Ignoring company-wide warnings issued almost immediately afterward, 16 employees sold off 5 million shares, worth about 200 billion won. 

Samsung, however, said it hasn’t decided on the exact number of workers it will take legal action against. Civil proceedings for trading losses, as well as the firm’s own disciplinary measures, are being carried out separately, according to the firm. 

“We will take this accident as a lesson for building up the momentum for implanting a change in DNA and innovation at the firm,” said Samsung Securities CEO Koo Sung-hoon. 

In addition, 27 executives, including the CEO will buy company shares to improve shareholder value. The executives will voluntarily acquire treasury stocks after the first-quarter earnings report on May 15, and issue a public disclosure, the company said.

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