Prosecutors from South Korea raid Samsung Securities’ Head Office

The raid was in connection to Samsung Securities’ recent fat finger error in which in accidentally issued shares worth 2.8 billion to its own employees.

On Monday, South Korean prosecutors raided the head office of Samsung Securities in relation to the brokerage firm’s recent fat finger error.

As reported here earlier, Samsung Securities had accidental issued shares worth 2.8 billion to its employees. Having realized the flaw, some of its workers had quickly sold off those shares resulting in a public outcry.

South Korea’s financial watchdog stated, it had found that 21 employees of Samsung Securities had either traded or attempted to sell those shares issued by mistake to them. It has reported their names to the prosecutor’s office.

Samsung Securities confirmed the raid but declined to provide any further details as investigation are still underway.

An official from Seoul’s prosecutor’s office was not immediately available for comment.

Following the error, Samsung Securities has promised to review and rebuild its internal control process and set up a fund to support investors damaged by the incident.

Shares of Samsung Securities saw little change on Monday morning.

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