The one-time mistake has left the brokerage house with no choice but to file for bankruptcy when the country’s financial regulator, the Financial Services Committee, suspended the firm’s license as there is little possibility for financial improvement. (image credit: Kobiz Media)
SEOUL, Feb. 17 (Korea Bizwire) – A South Korean brokerage house has been declared bankrupt, a local court said Tuesday, following a trading mistake in late 2013 that left the firm with tens of millions of dollars in losses.
The decision by the Seoul Central District Court came about a year after HanMag Securities Co., a small-scale local securities firm specializing in futures trading, made a numerical error in its options trading that incurred a loss of 46 billion won (US$41.75 million).
The one-time mistake has left the brokerage house with no choice but to file for bankruptcy when the country’s financial regulator, the Financial Services Committee, suspended the firm’s license as there is little possibility for financial improvement.
The court decision marks the first time for a South Korean securities firm to go bankrupt from a trading mistake.
