S.Korean prosecutors raid Samsung Sec office over fat finger trade (updated)

Samsung Securities Co

28/05/2018 03:00

* Public outrage over the error, sales of shares by
employees
    * Watchdog found that 21 employees attempted to profit from
error

 (Changes sourcing, adds details of the error)
    SEOUL, May 28 (Reuters) - South Korean prosecutors searched
Samsung Securities'  016360.KS  head office as part of their
investigation into the brokerage's recent fat finger error.
    The brokerage's accidental issuance of 2.8 billion shares to
employees - more than 30 times the number of its outstanding
shares and theoretically worth some $100 billion, prompted a
public outcry, particularly after it was discovered that some
workers quickly sold off shares.
    The country's financial watchdog said this month it had
found that 21 employees traded or attempted to sell shares to
make a profit from the error and reported them to prosecutors.
    The company official confirmed the raid, but declined to
provide further details as the investigation is still underway.
    A Seoul prosecutor official was not immediately available
for comment.
    After the error, Samsung Securities promised to rebuild its
internal control process and set up a fund to support investors
damaged by financial accidents.  urn:newsml:reuters.com:*:nL3N1SE1Z6
    Shares in the brokerage were little changed on Monday
morning.

 (Reporting by Ju-min Park and Hyunjoo Jin; Editing by Edwina
Gibbs)
 ((ju-min.park@thomsonreuters.com; +82 2 3704 5650; Reuters
Messaging: ju-min.park.thomsonreuters.com@reuters.net))