“Dividend error is not simple mistake in Samsung Securities… No internal check since 2010”
Kim Dong Wook | east@ | 2018-04-09 11:18:14
Samsung Securities `misdoing of dividends` took place on April 6, when employees made a mistake, paying KRW 2.8 billion in dividends to employees and KRW 2.9 billion in stocks.
It is expected to be recorded as a `talent` added to the moral hazard (moral hedge) of employees who received stocks along with the failure of Samsung Securities internal control to pay dividends as stocks, and the failure of the supervisory authorities such as the Financial Supervisory Service. According to industry sources, securities companies have to go through procedures such as a general meeting of shareholders to issue stocks, but they are embarrassed that the stocks that cannot exist without such a process have been traded on the system.
The case was received from the Korea Securities Finance Corporation by dividend determined by the shareholder of Samsung Securities, and sent to Samsung Securities `shareholders` association (representative) account. The financial authorities believe that Samsung Securities` internal misdemeanor is not a simple mistake of the staff in charge of dividend misappropriation. It is inevitable that corporation-level sanctions will be inevitable as well as the staff members as well as the CEO.
The Financial Supervisory Commission is expected to examine the system to prevent the recurrence of the possibility of other securities companies issuing and distributing stocks through processing, as Samsung Securities is a matter of concern to all other securities firms at the meeting of related institutions on August 8. A related official of the Financial Supervisory Service said, "There is a possibility that ghost stocks will be circulated temporarily because the total amount of stocks listed on the stock market is not regulated. The authorities pointed out that the fact that Samsung Securities did not carry out the comprehensive inspections after the inspections of Samsung Securities in 2010 was one of the reasons why Samsung Securities did not check its internal control properly.
As this situation proves that ghost stocks can be traded, the distrust of the overall domestic stock market system is expected to expand. At the moment, investors regret the Samsung Securities system in Cheong Wa Dae, and the National People`s Petition to ban short selling, the participants exceeded 120,000 in two days. According to the Cheong Wa Dae National Petition bill, the number of participants in Samsung Securities system regulation and short selling prohibited at 2:30 PM was 127,351.
There is also a growing voices calling for a short sale system that is disadvantageous to individual investors. Non-redeemable short selling, which sells without stocks, is legally prohibited. However, in the case of Samsung Securities, the Financial Supervisory Service (FSS) judged that it did not violate the restriction on the restriction of short selling as it participated in the transaction by actually seeing the number in the account. However, investors have complained that short selling, which only institutions and foreigners can make, makes the stock market "leaning". As a result of the Samsung Securities crisis, the shortage of the short selling system and the domestic stock market circulation system are expected to deepen.
Samsung Securities has been on the verge of trouble since almost all employees went to work regularly over the weekend, after a mistake of dividends on June 6. Samsung Securities CEO Choon-hoon apologized in an apology saying, "When a dividend problem arises, some of the employees have sold their share price and it has been a shameful and terrible feeling for the financial company.
The former president promised maximum relief to investor damage, stringent censure for employees with moral hazard, thorough cause identification and prevention of recurrence in order to restore market confidence.
By Kim Dong Wook east@
[ copyright ⓒ The Digitaltimes ]
It is expected to be recorded as a `talent` added to the moral hazard (moral hedge) of employees who received stocks along with the failure of Samsung Securities internal control to pay dividends as stocks, and the failure of the supervisory authorities such as the Financial Supervisory Service. According to industry sources, securities companies have to go through procedures such as a general meeting of shareholders to issue stocks, but they are embarrassed that the stocks that cannot exist without such a process have been traded on the system.
The case was received from the Korea Securities Finance Corporation by dividend determined by the shareholder of Samsung Securities, and sent to Samsung Securities `shareholders` association (representative) account. The financial authorities believe that Samsung Securities` internal misdemeanor is not a simple mistake of the staff in charge of dividend misappropriation. It is inevitable that corporation-level sanctions will be inevitable as well as the staff members as well as the CEO.
The Financial Supervisory Commission is expected to examine the system to prevent the recurrence of the possibility of other securities companies issuing and distributing stocks through processing, as Samsung Securities is a matter of concern to all other securities firms at the meeting of related institutions on August 8. A related official of the Financial Supervisory Service said, "There is a possibility that ghost stocks will be circulated temporarily because the total amount of stocks listed on the stock market is not regulated. The authorities pointed out that the fact that Samsung Securities did not carry out the comprehensive inspections after the inspections of Samsung Securities in 2010 was one of the reasons why Samsung Securities did not check its internal control properly.
As this situation proves that ghost stocks can be traded, the distrust of the overall domestic stock market system is expected to expand. At the moment, investors regret the Samsung Securities system in Cheong Wa Dae, and the National People`s Petition to ban short selling, the participants exceeded 120,000 in two days. According to the Cheong Wa Dae National Petition bill, the number of participants in Samsung Securities system regulation and short selling prohibited at 2:30 PM was 127,351.
There is also a growing voices calling for a short sale system that is disadvantageous to individual investors. Non-redeemable short selling, which sells without stocks, is legally prohibited. However, in the case of Samsung Securities, the Financial Supervisory Service (FSS) judged that it did not violate the restriction on the restriction of short selling as it participated in the transaction by actually seeing the number in the account. However, investors have complained that short selling, which only institutions and foreigners can make, makes the stock market "leaning". As a result of the Samsung Securities crisis, the shortage of the short selling system and the domestic stock market circulation system are expected to deepen.
Samsung Securities has been on the verge of trouble since almost all employees went to work regularly over the weekend, after a mistake of dividends on June 6. Samsung Securities CEO Choon-hoon apologized in an apology saying, "When a dividend problem arises, some of the employees have sold their share price and it has been a shameful and terrible feeling for the financial company.
The former president promised maximum relief to investor damage, stringent censure for employees with moral hazard, thorough cause identification and prevention of recurrence in order to restore market confidence.
By Kim Dong Wook east@