S.Korean pension fund stops trading with Samsung Sec after fat finger error

Samsung Securities Co

10/04/2018 02:39

SEOUL, April 10 (Reuters) - South Korea's biggest pension
fund said on Tuesday it stopped trading stocks through Samsung
Securities Co Ltd  016360.KS  after fat finger error resulted in
the accidental issuance of 2.8 billion shares to employees.
    The public outcry over the mistaken issuance, more than 30
times the number of the broker's outstanding shares and 
theoretically worth some $100 billion, has only gained steam
after it was discovered that some employees quickly sold off
their shares. Authorities have 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," an official with the National Pension
Service said.
    The official declined to disclose the volume of the fund's
stock trading done through Samsung. It had 136 trillion won 
($127 billion) of its assets invested in the local stock market
as of January.
    Samsung Securities, one of South Korea's biggest brokerages,
issued the shares in error when it was supposed to pay dividends
worth 2.8 billion won to employees under a stock ownership plan.
    Its stock extended losses on Tuesday and has fallen 10
percent since Thursday's close, wiping about $330 million from
its market value.
 ($1 = 1,070.7000 won)

 (Reporting by Joyce Lee and Ju-min Park;
Editing by Edwina Gibbs)
 ((jungyoon.lee@thomsonreuters.com; +82 2 3704 5609; Reuters
Messaging: jungyoon.lee.thomsonreuters.com@reuters.net))