Supreme Court orders Samsung Securities to pay damages to NPS over 2018 dividend error

The Supreme Court recently ruled in favor of the National Pension Service (NPS), ordering Samsung Securities Co. to pay 1.86 billion won ($1.3 million) in damages over a 2018 dividend error. This mistake occurred on April 6, 2018, when an employee at Samsung Securities accidentally issued 2.8 billion shares instead of the intended 1,000 won per share in dividends to employees.

The error resulted in shares with no actual value being issued, causing significant distress in the market. Samsung Securities' shares plummeted by approximately 12 percent on the day of the incident. The NPS had originally filed a suit seeking 29.9 billion won in damages, stemming from the sharp decline in the brokerage firm's stock price.

The Supreme Court affirmed earlier rulings, mandating Samsung Securities to pay 1.86 billion won in damages, stating there is a strong likelihood of causation between the error and the financial repercussions.