Samsung Securities CEO quits over Stock Blunder

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Samsung Securities CEO quits.
Samsung Securities CEO quits.

Seoul : Samsung Securities CEO Koo Sung Hoon has recently resigned from the technological giant after South Korean financial regulator caught hold off the company with a penalty of $129,000. The penalty was imposed in the light of an employee issuing 2.8 billion shares to about 2,000 employees.

Highlights of Samsung Securities Stock Blunder.

Koo Sung Hoon disclosed his resignation in a regulatory filing. This happened a day after the Financial Services Commission ordered the firm to suspend Koo Sung for 3 months. Stock Brokerage will not accept any new client for next six months. 144 million won ($129,000) is the total fine Samsung needs to pay.
13 employees involved in the trading of phantom shares were punished by the regulators.  Furthermore each employee is fined $27,000 according to Financial Supervisory Service.
The FSS believes, “the workers knew about the wrongful transfer of shares in their accounts. The firm didn’t set up standards for internal controls to a level required by the government.” With the replacement of the Samsung Securities CEO the firm will do its best to minimize losses of shareholders and clients related to the incident.

Samsung Securities CEO denied issuance of stocks earlier.

Samsung Securities CEO quits.
Samsung Securities CEO quits.

In an article published on April 10, 2018 Samsung Securities CEO has denied over the issuance of Ghost Stocks. “According to our own investigation, there has been no such case so far.” He told reporters after a meeting with the Korea Financial Investment Association, a business lobby of local brokerages. “I am not sure about the possibilities. There is another organisation working on it.”  Samsung Securities has mistakenly issued 2.8 billion nonexistent shares on April 6. It was supposed to pay dividends worth 2.8 billion won to employees under a stock ownership plan. Despite warning notifications, 16 employees, including some ranking officials and analysts, sold 5.01 million shares, worth about 200 billion won.

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