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Prosecutors Raid Samsung Securities' HQ

Written: 2018-05-28 11:30:04Updated: 2018-05-28 13:30:57

Prosecutors Raid Samsung Securities' HQ

Photo : YONHAP News

Prosecutors probing Samsung Securities’ mistaken payment of dividends in early April raided the headquarters of the securities firm on Monday morning. 
 
The Seoul Southern District Prosecutors' Office said it sent investigators to the head office as well as to four branch offices to secure evidence. 
 
The move came after the Financial Supervisory Service(FSS) reported 21 Samsung Securities employees to the prosecution on charges of embezzlement and breach of duty on May 16th. 
 
Samsung Securities mistakenly paid out billions of shares to its employees as stock dividends on April sixth. 
 
Under an employee stock ownership plan, the company had originally planned to pay dividends of one thousand won per share to employees. Instead, dividends of one thousand shares were mistakenly paid out after a worker processed the wrong figure. 
 
As a result, about two-point-eight billion shares were incorrectly paid as dividends worth nearly 112-point-seven trillion won. 
 
Some five million shares were sold by employees before the error was fixed.
 
Prosecutors plan to summon the related employees for questioning after they analyze the evidence seized in Monday’s raids.

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