2023-11-09 08:09:46
[시사저널e=송준영 기자] Hwang Hyun-soon, CEO of Kiwoom Securities, decided to voluntarily resign. Last month, Kiwoom Securities’ negligence in risk management and large-scale receivables issues arose due to the ‘Youngpoong Paper lower limit price incident’ and decided to take moral responsibility. Kiwoom Securities plans to discuss follow-up procedures at the board of directors meeting held this month.
Kiwoom Securities announced on the 9th that President Hwang had conveyed his intention to resign to the board of directors in order to take moral responsibility for the large amount of outstanding receivables. It is known that President Hwang made this decision because he felt responsible for the negligence of risk management in failing to block Youngpoong Paper’s outstanding transactions in advance, which resulted in a loss of 400 billion won.
Youngpoong Paper is a stock that soared 814.76% until the 17th of last month this year. An investigation by the financial authorities is in progress as price adjustments by certain forces are suspected during the stock price rise. In particular, it was revealed that many of Kiwoom Securities’ accounts were used, and a large amount of receivables was generated due to a sudden lower limit on the 18th of last month, raising concerns regarding losses at Kiwoom Securities.
Kiwoom Securities announced following the market closed on the 20th of last month, “Due to the lower limit price of Youngpoong Paper, receivables of 494.3 billion won were incurred in customer consignment accounts.” Kiwoom Securities planned to collect receivables by counter-trading Youngpoong Paper, but was unable to collect most of them as Youngpoong Paper recorded the lowest price for 7 consecutive trading days following trading resumed.
Kiwoom Securities announced in a public announcement on the 6th, “After the resumption of Youngpoong Paper trading, all the quantities subject to counter-trade were concluded and some of the receivables were recovered,” and “The current receivables are approximately 433.3 billion won.” Due to the sharp decline in Youngpoong Paper’s stock price, the company was only able to collect 61 billion won out of approximately 494.3 billion won in receivables.
Kiwoom Securities said, “We will make every effort to recover receivables, including repayment discussions with customers and legal action,” but added, “The final amount of receivables may be reduced depending on customer repayment, and we plan to reflect the loss in the fourth quarter performance of this year.”
Meanwhile, Kiwoom Securities plans to discuss follow-up procedures following CEO Hwang’s intention to resign at the board of directors meeting on the 16th. If the board of directors makes a final decision to resign, President Hwang will step down eight months following being reappointed at the regular shareholders’ meeting in March of this year.
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