In the latest development, Samsung Securities the financial arm of Samsung Group was fined for $129,000 by South Korea’s financial regulator.
This incident has led to the resignation of Samsung Securities Chief Executive Officer, Koo Sung Hoon. He resigned after the company was penalized because an employee’s error sparked a $105 billion “ghost stock” blunder.
The CEO’s resignation was unveiled in the stock exchange filing. The company’s stock brokerage business was barred from having new clients on board for coming six months.
Media reports suggest that Samsung Securities had issued around 2.8 billion shares to employees. The number was more than thirty times the number of its outstanding shares and it was valued at approximately $100 billion which were sold off by workers instantly.
The financial regulator also penalized thirteen employees from the firm for this misconduct. These workers were responsible in the trading of shares deposited in the account as a result of the blunder.