(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Sangjin] Recently, some domestic securities firms in Korea have decided to partially compensate Korean investors who suffered losses due to the recent computer error on the New York Stock Exchange (NYSE).

On the 9th, Kiwoom Securities announced, "We have decided to compensate some of the losses suffered by customers due to the NYSE computer error through individual consultations." Earlier, on the 3rd (local time), trading was suspended for about an hour as a result of an error at the NYSE, during which the prices of about 40 stocks dropped by more than 90% to absurdly low levels. When trading resumed, customers who had placed market orders saw their orders executed at normal prices, resulting in a flood of unpaid balances amounting to tens of times their deposits. This situation, known as the "sage investor" issue, was reported by Hankyoreh. At that time, Korean securities firms showed reluctance to compensate, but they have now changed their stance.

The compensation amount is expected to be determined by the difference between the executed price and the current price. Investors who purchased stocks at normal prices after the computer error and suffered additional losses due to the subsequent decline in stock prices will be compensated by securities firms to cover those additional losses.

Mirae Asset Securities is still considering whether to provide compensation. A Mirae Asset Securities official stated, "We are currently in consultation with individual customers," adding, "The decision on compensation has not yet been made."

 

 

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