Samsung Securities ordered to pay damages to National Pension Service

South Korea’s Supreme Court has finalized a ruling ordering Samsung Securities to pay 1.86 billion won (approximately $1.3 million) in damages to the National Pension Service (NPS). The decision stems from a 2018 dividend error where an employee mistakenly issued 2.8 billion “ghost shares” worth roughly 112 trillion won instead of the intended 1,000 won cash dividend per share.

The error caused a significant market shock, leading to a temporary drop in Samsung Securities’ stock price of up to 11.7% as some employees sold the erroneously issued shares. The NPS, a major shareholder, filed a lawsuit seeking 29.9 billion won in damages due to the resulting financial losses.

The Supreme Court upheld previous lower court rulings, acknowledging a strong causal link between the negligence of the brokerage firm’s employees and the financial losses suffered by the NPS. While the court recognized the employer's liability, it maintained the previous decision to limit the total compensation amount to 1.86 billion won.