The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Family of 5 found dead in 3 separate locations

  • 3

    All-Korean showdowns set up on 1st day of medal race

  • 5

    Opposition party leader ends 24-day hunger strike for treatment

  • 7

    Exhibition for soldiers highlights North Korea's human rights abuses

  • 9

    Sil-A overcomes stage fright, and them some

  • 11

    Historic NASA asteroid mission set for perilous return

  • 13

    Hangzhou Asian Games open after COVID-enforced delay

  • 15

    Top diplomats of Korea, Iran discuss bilateral ties following frozen funds transfer

  • 17

    Korea's top-ranked Go player wants to capitalize on rare chance

  • 19

    EU does not want to decouple from China but must protect itself: EU trade chief

  • 2

    Xi says he will seriously consider visit to South Korea: official

  • 4

    Understanding Korean Modernization

  • 6

    Bears of Joseon part 1: Fanciful tales and deadly claws

  • 8

    US finalizes national security 'guardrails' for CHIPS funding

  • 10

    PM departs for China for Asian Games, meeting with Xi

  • 12

    Allies vow stern measures against Russia-NK arms deal

  • 14

    Korea looking to hit ground running on 1st day of medal events

  • 16

    League of Legends, other esports join Asian Games in competition for first time

  • 18

    Yoon returns home from New York trip

  • 20

    PHOTOSOpening ceremony of 19th Hangzhou Asian Games

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Mon, September 25, 2023 | 02:29
Business
HanMag on verge of bankruptcy
Posted : 2013-12-13 18:31
Updated : 2013-12-13 18:31
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
The Financial Supervisory Service (FSS) launched an investigation Friday into the cause of a massive trading loss at HanMag Securities, Thursday. The brokerage house is estimated to have suffered unexpected losses worth 46 billion won by exercising its call and put options exceptionally higher or lower than market prices on the KOSPI200 index market. / Yonhap
The Financial Supervisory Service (FSS) launched an investigation Friday into the cause of a massive trading loss at HanMag Securities, Thursday. The brokerage house is estimated to have suffered unexpected losses worth 46 billion won by exercising its call and put options exceptionally higher or lower than market prices on the KOSPI200 index market. / Yonhap

Brokerage firm under probe; loses W46 bil. on wrong order

By YI Whan-woo


HanMag Securities is on the verge of bankruptcy after it failed to settle most of its transactions by the 4 p.m. deadline Friday following a critical ordering mistake on index options transactions made Thursday.

The Korea Exchange (KRX), the country's sole securities exchange operator, said Friday that the small-scale brokerage house specializing in futures is liable to default.

"The company had to settle transaction payments worth 58.4 billion won by the deadline, but only paid 1.4 billion won. As a result, we paid the remaining 57 billion won with reserves set aside by securities companies for emergency settlements," a KRX spokesman said.

"HanMag obviously must pay us back the amount and we're discussing the best way to settle the matter," he added. "We will make a final decision after seeing the outcome of the financial regulator's investigation."

The Financial Supervisory Service (FSS) launched an investigation to find out the exact cause of the mistake made by the company.

The FSS will strip HanMag of its securities license if it finds any wrongdoing conducted by the firm or if it falls into capital erosion due to the losses caused by the mistake.

"The company is estimated to have suffered losses worth 46. billion won ($43.67 million). Given that its equity capital is only 20 billion won, it is probable that it will fall into default," the KRX official said. According to the Financial Supervisory Service (FSS), the firm's debt stood at 120.27 billion won as of March, while its total assets were 140.57 billion won.

Earlier, the KRX banned the firm from stock trading and debt assumption. The KRX said the measure was to prevent the firm from inflicting losses on investors on the benchmark KOSPI and other bourses.

"We have taken steps against HanMag Securities to protect investors from possible risk caused by the company's failure to make payments in accordance with its decision on Thursday," the KRX said in a press release.

The brokerage house suffered the unexpected losses by exercising its call and put options exceptionally higher or lower than market prices on the KOSPI200 index market, Thursday morning.

On its website, HanMag Securities attributed the error to its computer network. Industry experts said that it is likely that there was an error at the firm's automatic profit-taking trade program.

An option is a contract which gives the buyer the right to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date. A call option is the right to buy, while a put option is the right to sell.

There were a total of 36,100 trades associated with the incident involving 46 traders. The trade amount across the securities market was about 6.3 billion won, and across the derivatives market, 58.4 billion won, according to the KRX.

"We're doing our best, but we urge all our customers to reconsider making trades involving our products in case other unpredictable situations occur," HanMag stated.

Of the 46 traders, a number of them were securities companies that made deals on behalf of foreign investors, according to the KRX.

"It's almost impossible to find out all those foreign investors and ask their support in helping HanMag Securities," the KRX said.

Emailyistory@ktimes.co.kr Article ListMore articles by this reporter
 
miguel
Top 10 Stories
1Korea, Saudi Arabia celebrate 93rd Saudi National Day, vow stronger cooperation Korea, Saudi Arabia celebrate 93rd Saudi National Day, vow stronger cooperation
2Samsung, SK relieved by revised chip restrictions on China Samsung, SK relieved by revised chip restrictions on China
3Bears of Joseon part 2: Behind bars Bears of Joseon part 2: Behind bars
4Mirae Asset Global Investments' AUM reaches $219 bil. Mirae Asset Global Investments' AUM reaches $219 bil.
5Seoul, Beijing try to mend fences as Russia and N. Korea grow closerSeoul, Beijing try to mend fences as Russia and N. Korea grow closer
6JTI Korea joins Jongno clean-up JTI Korea joins Jongno clean-up
7S. Korea to stage massive military parade as tensions with North remain highS. Korea to stage massive military parade as tensions with North remain high
8Patients, doctors at loggerheads as operating room CCTV footage made mandatoryPatients, doctors at loggerheads as operating room CCTV footage made mandatory
9CKD Kochon Foundation awards Ukraine health authorities for treating tuberculosis patients amid raging war CKD Kochon Foundation awards Ukraine health authorities for treating tuberculosis patients amid raging war
10Low growth becomes new normal for Korean economy Low growth becomes new normal for Korean economy
Top 5 Entertainment News
1TEMPEST gears up to showcase fiery passion TEMPEST gears up to showcase fiery passion
2[INTERVIEW] Yim Si-wan went extra mile to portray legendary athlete in 'Road to Boston' INTERVIEWYim Si-wan went extra mile to portray legendary athlete in 'Road to Boston'
3BLACKPINK's contract renewal still in limbo BLACKPINK's contract renewal still in limbo
4[INTERVIEW] Virtual K-pop group MAVE: is more than just pretty pixels INTERVIEWVirtual K-pop group MAVE: is more than just pretty pixels
5Hebrew University students travel to Korea to explore musical landscape Hebrew University students travel to Korea to explore musical landscape
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group