Supreme Court orders Samsung Securities to pay NPS $1.3M over 2018 dividend error

Key facts

• Samsung Securities must pay 1.86 billion won (US$1.3 million) to the National Pension Service.
• The payment is for damages related to a 2018 dividend error.
• The error occurred when an employee typed in 1,000 shares instead of 1,000 won per share in dividends.
• The Supreme Court ruled in favor of the NPS in the damages suit.

The Supreme Court of South Korea has ordered Samsung Securities to pay 1.86 billion won (US$1.3 million) in damages to the National Pension Service (NPS) over a dividend error that occurred in 2018. The ruling favors the NPS in a damages suit filed against the brokerage firm following a 'fat-finger' mistake by an employee on April 6, 2018. The error involved the accidental issuance of 1,000 shares instead of the intended 1,000 won per share in dividends meant for employees under a compensation plan. The top court's decision mandates Samsung Securities to compensate the NPS for the financial impact of this blunder.