The Financial Supervisory Service has launched a probe into the local brokerage industry to weed out irregularities and prevent financial accidents.

The regulator is targeting 62 securities firms and eight futures trading firms, chiefly their internal controlling.

The companies have been ordered to submit reports on their operations for internal monitoring by Dec. 10.

The irregular practices also include unauthorized insider trading with major shareholders and unfair sales of retirement pension funds, according to FSS officials.

The probe comes following financial accidents in the brokerage sector as well as other financial sectors.

Despite a series of regulatory instructions, cyber network problems occurred again last June in the brokerage sector, following similar cases in NH Investment & Securities, Leading Investment & Securities, and Dong Yang securities earlier this year.

Customers of Hyundai Securities experienced problems in their online investment in stocks early Monday due to a glitch in the brokerage firm’s network system.

The investors could not log on to the company’s home trading system for 40 minutes from 9 a.m., Hyundai Securities said in a statement.

While company officials downplayed the possibility of hacking, frequent glitches in the brokerage sector have been causing complaints from customers.

Though the FSS had pledged to conduct tougher oversight of electronic financing, incidents and accidents have occurred at a steady pace.

The regulator has been conducting an information technology security inspection ― in written form ― into all financial service companies since April.

“After the paper-based probe, each financial sector, such as banks and brokerage firms, will be subject to an on-the-spot probe of the task force,” an FSS official has stressed.

By Kim Yon-se (kys@heraldcorp.com)