Samsung Securities Explained

Samsung Securities Co., Ltd.
Native Name:삼성증권 (三星證券)
Former Name:Hanil Investment & Finance
Kookje Securities
Type:Public
Location:Seoul, South Korea
Key People:Seok Hoon Chang (CEO)
Num Employees:2,397 (2021)
Industry:Financial services
Products:Investment banking
Sales and trading
Wealth management
Revenue: KRW 2.40 trillion (2021)
Net Income: KRW 965.34 billion (2021)
Assets: KRW 65.71 trillion (2021)
Equity: KRW 6.08 trillion (2021)
Owners:Samsung Life Insurance (29.60%)
National Pension Service (11.30%)
Parent:Samsung
Footnotes:[1]

Samsung Securities Co., Ltd. is a South Korean financial services company headquartered in Seoul, South Korea, and a subsidiary of Samsung Group. It is one of the largest securities companies in Korea.[2]

History

On 19 October 1982, Hanil Investment & Finance was established.[1] [3]

In 1988, the company was publicly listed on the Korea Exchange.

In 1991, the company changed its name to Kookje Securities.

In 1992, the company was incorporated into the Samsung Group and was rebranded to Samsung Securities.

In 1996, the company attempted to set up a joint venture with J.P. Morgan & Co. to sell mutual funds in Korea but by 1997, the venture failed.[4] In 1998, the company was the first to sell mutual funds in Korea.

In 2000, the company merged with Samsung Investment Trust.

In 2014, the company's ownership of Samsung Asset Management was transferred to Samsung Life Insurance.[5]

In 2018, the company set up a team specializing in analysing investments related to North Korea, the first in the industry to do so according to a statement issued.[6] [7]

The company has signed partnerships with various companies. These include Rothschild & Co (2008),[8] Neuberger Berman (2014),[9] KGI Securities (2016)[10] and Societe Generale (2018).[11]

The company has opened offices overseas. These include London (1996), New York (1998) and Hong Kong (2001).[12]

2018 Samsung fat-finger error

See main article: 2018 Samsung fat-finger error. On 8 April 2018, an employee of Samsung Securities mistakenly distributed shares worth US$100 billion to employees.[13] [14] The error happened when the company tried to pay a dividend to about 2,000 employees who participated in the company stock ownership plan. The intent was to give each of those employees 1,000 South Korean won, worth about US$1, but instead issued 2.8 billion shares. These shares were worth about 112.6 trillion won, or 30 times the market capitalization of the company.

The error caused the price of the company's stock to drop by 11 percent within a day and to fluctuate after that. By 7 May 2018, the company stated that it would file criminal lawsuits against employees who sold their shares during the fat finger incident.

Notes and References

  1. Web site: Annual Report 2021 . 14 January 2023. https://web.archive.org/web/20230114094243/https://www.samsungsecurities.com/common.do?cmd=down&saveKey=kor.business&fnName=2021_SamsungSecurities_Report_eng.pdf . 14 January 2023 .
  2. Web site: Samsung Securities Company Overview & News . 15 March 2023 . . en.
  3. Web site: 11 April 2011 . Moody's assigns first-time Baa2/P-2 ratings to Samsung Securities, Korea . 14 January 2023 . Moodys.com . en.
  4. Web site: Tam . Pui Wing . 18 August 1997 . Mutual Fund Ventures Find Difficulties in South Korea . 14 January 2023 . WSJ . en-US.
  5. Web site: Samsung Life seeks to wholly own Samsung Asset Management - Pulse by Maeil Business News Korea . 14 January 2023 . pulsenews.co.kr . ko.
  6. News: 8 June 2018 . Samsung Wants to Guide You on Picking Stocks Tied to North Korea . en . Bloomberg.com . 14 January 2023.
  7. Web site: Ji-hyoung . Son . 26 July 2018 . Samsung Securities steps up efforts for NK investment opportunities . 14 January 2023 . . en.
  8. Web site: Samsung Securities to Enter into Global M&A Market - Pulse by Maeil Business News Korea . 14 January 2023 . pulsenews.co.kr . ko.
  9. Web site: 5 November 2014 . Neuberger Berman, Samsung units team up to offer strategies in South Korea . 14 January 2023 . Pensions & Investments . en.
  10. Web site: Samsung Securities to start trading Taiwanese stocks . 14 January 2023 . www.theinvestor.co.kr . en.
  11. Web site: 17 July 2018 . Samsung Securities partners with Societe Generale to introduce European equities . 14 January 2023 . 매경ECONOMY.
  12. News: 31 January 2012 . Samsung Securities Said to Close Most of Hong Kong Unit . en . Bloomberg.com . 14 January 2023.
  13. News: Jeong . Eun-Young . Samsung Securities Seeks Charges Against Some Employees Over 'Fat Finger' Mistake . 14 January 2023 . . 7 May 2018 . en-US.
  14. Web site: Ji-hyoung . Son . 8 April 2018 . Samsung Securities fiasco exposes stock trading loophole . 14 January 2023 . . en.