Samsung Securities’ the backbone of dividend accidents is spreading not only in securities firms but also in the financial investment industry as a whole.

It has been pointed out that the credibility of investors has collapsed as the moral consciousness of employees of financial companies who are honest and trustful has fallen to the bottom.

Financial Supervisory Commission Chairman Kim Ki-shik held a meeting with the head of KEI and 17 representatives at the Yeouido Financial Investment Association in Seoul on April 10, saying, "If a similar accident recurs, capital market confidence cannot be restored. Please. "

Mr. Kim said, "Some companies` dividend systems seem to be similar to Samsung Securities, so the brokerage firms themselves need to thoroughly inspect and strengthen internal control."

A survey by the Financial Supervisory Service has shown that there are four more securities firms with similar payout systems to Samsung Securities.

The FSS plans to inspect the stock trading system as well as the dividend system, which is the cause of the accident.

Mr. Kim also stated, "Please check the stock trading system in general, including the cash dividend issue, which caused the accident, and make a fundamental improvement plan." Although the incident gave a huge shock to the capital market and investors, as a good opportunity to create a trading environment, the FSS and the industry should try to improve the wrong system. "

Samsung Securities immediately hit the spot with this incident.

According to Samsung Securities, more than 200 investors applied for damages by the morning.

Samsung Securities executives and executives are planning to apologize to investors who have applied for damages from this day.

Despite of the specific compensation standard has not yet been set, it is impossible to estimate the amount of compensation Samsung Securities will have to pay, as it will make the most of compensation without a lawsuit. Samsung Securities plans to announce detailed compensation plans for investors in consultation with the supervisory authorities.

Major pension funds, which are a major investment, have entered into a deal with Samsung Securities. The National Pension Service decided to suspend direct trading with Samsung Securities due to lowered transaction stability. The transaction limit, which includes the commissioned trading stock transaction, will be decided based on the findings of the financial authorities.

In addition to the national pension plan, other pension funds, such as private pension funds, civil servant pension funds, and faculty members` mutual aid funds, will also temporarily suspend direct management transactions with Samsung Securities.

Also, there is a high possibility that the CEO will be charged with the dismissal, dismissal from the institutional warning, and suspicion of business suspension.

"There is no time limit for victims` compensation, and we will get them as soon as you apply," he said. "There are many things that we have invested so much in the investors, especially from the legal ones. I will. "

For Samsung Securities, there are many indications that accidents have seriously hindered the reliability of the financial investment industry and the capital market. Attendees were worried that the accident had greatly damaged the credibility of the entire capital market.

As the reliability of the financial investment industry has fallen, the issuance of additional issuers of Mirae Asset Daewoo, NH Investment & Securities and KB Securities as well as Samsung Securities, whose approval review is suspended, will be delayed for a considerable period of time.

An investor from a brokerage firm stated, "The stock market has been in a bad situation, and investors have been distrusted by the accident." He said, "I fear that the issuer will be delayed for a long time as it is being subordinated." Earlier, Samsung Securities had to pay a KRW 1,000 dividend per share to its employees on April 6. As a result, 2,831.62mn shares were paid instead of 2.831 billion won in dividends, and about KRW 112 trillion in cash. Sixteen of the employees who received the stock received criticism that they sold the stocks in the market, knowing that they were wrongly placed, and that their ethical awareness fell to the bottom.

By Kim Min Soo minsu@


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