South Korea’s Samsung Securities Co. sacked, cut salaries, or suspended 23 employees for capitalizing on the company’s “fat finger” error over employee dividend payouts by selling misplaced shares that caused havoc on the market and brokerage house’s credibility.

Samsung Securities took strongest possible actions on employees who resold 5.01 million misplaced shares.

In April, Samsung Securities paid employees 1,000 shares instead of 1,000 won ($0.93) for annual dividends for each employee holding due to computer error. The brokerage house issued a total 2.8 billion shares instead of 2.8 billion won in dividends to its employees, causing trading chaos. Stocks plunged 12 percent during the day upon reports that some employees dumped the shares to profiteer from the windfall.

The employee who had mistakenly typed “shares” instead of “won” faced a heavy penalty. One trader who had tried to sell one share but canceled immediately received lighter punishment.

The company said it “finished internal disciplinary process related to the dividend error incident,” but declined to unveil the details of the disciplinary action as civil and criminal suits against the workers are under way.

The Financial Supervisory Service pressed criminal charges against 21 employees who sold or tried to sell the misplaced shares.

Shares of Samsung Securities closed Thursday up 0.54 percent at 37,300 won.

By Han Ye-kyung and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]