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피터빈트

23 Samsung Securities workers disciplined for dividend fiasco

By Yonhap

Published : May 23, 2018 - 19:57

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Samsung Securities Co. took disciplinary actions Wednesday against employees responsible for  last month's massive "fat-finger" dividend error, industry sources said. 

In April, the brokerage firm mistakenly issued about $100 billion worth of its own "ghost" stocks and paid them to employees as dividends. Despite the company's repeated advisories to workers  about the mistake, some employees sold off a combined 5.01 million of non-existent shares, causing heavy losses to investors and serious market confusion.

 

(Yonhap) (Yonhap)

At a disciplinary committee earlier in the day, Samsung decided to mete out heavy punishment, including the dismissal, the suspension and a wage cut, to 16 workers who sold off the shares and five others who made botched attempts, according to the sources. 

The trader who made the entry mistake by typing "shares"  instead of "won" in Korean when sending the dividends, also faced heavy punishment, while one other worker got a lighter penalty for trying to sell one share but withdrawing his or her attempt right away, the sources said.  

Samsung said it "today wrapped up the internal process for disciplinary actions regarding the incident," but refused to disclose details as legal actions against the workers are now in progress.

Earlier this month, the Financial Supervisory Service said it will seek a prosecution probe into the incident, while expanding its inspection into other 32 local brokerages to check their internal control systems. (Yonhap)

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