The brokerage arm of Samsung conglomerate will be banned from brokering equity securities transactions of new investors from Friday to Jan. 26, 2019, according to the Financial Services Commission.
Incumbent Chief Executive Koo Sung-hoon was slapped with a three-month business suspension, while two former CEOs Yoon Yong-am and Kim Suk were imposed disciplinary actions that equal a layoff. Kim Nam-soo, another former CEO of the brokerage firm and incumbent Samsung Life Insurance vice president, was given a one-month suspension.
Samsung Securities has been under scrutiny for failing to prevent the company from issuing unauthorized stocks to its employees as a dividend on April 6. The slipshod action led to price fluctuation of Samsung Securities shares, causing an 11.7 percent intraday drop.
By Son Ji-hyoung