Why did the Supreme Court order Samsung Securities to pay damages to the National Pension Service over the 2018 dividend error?

The court found a strong likelihood that employee negligence caused the losses suffered by the NPS. It upheld lower court rulings that held Samsung Securities liable for 1.86 billion won in damages.

What happened in Samsung Securities’ 2018 dividend mistake?

An employee typed 1,000 shares instead of 1,000 won per share in a dividend entry for employees under a compensation plan. That error led to the issuance of 2.8 billion shares worth about 112 trillion won on paper.

How much did the NPS originally seek in damages, and what happened to Samsung Securities shares after the blunder?

The NPS filed a 29.9 billion won damages suit. Samsung Securities shares fell about 12 percent on the day of the mistake after the accidental stock issuance and subsequent market sell-off.

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

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Summary

The Supreme Court ordered Samsung Securities to pay the National Pension Service 1.86 billion won in damages over a 2018 dividend error in Seoul on Wednesday. The court upheld lower rulings in the suit over the accidental stock issuance and said there was a strong causal link between employee negligence and the NPS losses. The brokerage had mistakenly issued 2.8 billion shares, and Samsung Securities stock fell about 12 percent that day.

Key Facts

The NPS had sought 29.9 billion won in damages after the sharp stock price fall tied to the blunder.
The employee error happened on April 6, 2018, when 1,000 shares were typed instead of 1,000 won per share in dividends.
The lower court limited Samsung Securities’ liability to 50 percent in calculating the damages.
Both sides appealed before the appellate court upheld the lower court decision and the Supreme Court issued its final ruling.

By Yonhap

Published Aug 12, 2026 10:51 am KST
Updated Aug 12, 2026 11:12 am KST

Samsung Securities headquarters in Seocho District, Seoul / Courtesy of Samsung Securities

The Supreme Court on Wednesday ordered Samsung Securities Co. to pay the National Pension Service (NPS) 1.86 billion won ($1.3 million) in damages over a 2018 dividend error by an accidental stock issuance.

The top court ruled in favor of the NPS in the damages suit filed against the brokerage firm stemming from a "fat-finger" error committed by an employee at the firm on April 6, 2018.

The stock blunder took place when the Samsung Securities official typed in 1,000 shares instead of 1,000 won per share in dividends that were to be paid to employees under a compensation plan.

As a result, the company issued 2.8 billion shares worth about 112 trillion won that only existed on paper, and some employees who received the stocks quickly sold them in the market. Shares of Samsung Securities nose-dived about 12 percent on the day.

The NPS filed the suit in response to the sharp stock price fall, claiming 29.9 billion won in damages.

The Supreme Court upheld lower court rulings that ordered the brokerage firm to pay 1.86 billion won in damages, ruling that there is a "strong" likelihood of a causal relationship between the negligence of the firm's employees and the financial losses suffered by the NPS.

During the case's first instance trial, a lower court calculated the damages by limiting the company's liability at 50 percent, ruling that it would be harsh to hold the company entirely responsible for the losses.

Both sides appealed the ruling, and an appellate court upheld the lower court decision before the top court's final ruling.

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