The error, ascribed to fat fingers, has led to a public outcry. Some employees were quick to sell the shares mistakenly issued to them. South Korean authorities are investigating the incident.
On Tuesday, South Korea’s National Pension Service, the countries biggest pension fund stated, it has stopped trading stocks through Samsung Securities Co Ltd after a after fat finger error resulted in the accidental issuance of 2.8 billion shares to employees.
Following the fat finger error, there has been a public outcry over the mistaken issuance, which theoretically is worth nearly $100 billion, after reports emerged that some employees were quick to sell off their shares.
South Korean authorities have now launched an investigation into the matter.
“We have suspended direct trading with Samsung Securities on concerns over decreasing stability in trading after a financial accident occurred,” said an official from the National Pension Service. However, the official declined to disclose the volume of the fund’s stock trading done through Samsung.
As of January 2018, the National Pension Service had assets worth $127 billion (136 trillion won) invested in the local stock market.
South Korea’s biggest brokerage Samsung Securities stated it had issued the shares in error when it was supposed to pay dividends worth 2.8 billion won to employees under a stock ownership plan.
On Tuesday, shares of Samsung Securities extended their losses; the stock has fallen by 10% since last Thursday wiping out $330 million from its market capitalization.
($1 = 1,070.7000 won)