SEOUL, June 12 (Korea Bizwire) – Korean stock firms are engaged in an increasing number of legal battles, and eight out of ten lawsuits are bringing them to the dock.
According to the Financial Consumer Agency on June 11, the 58 stock firms serving the Korean stock market were engaged in 444 lawsuits seeking 1.728 billion won (US$1.55 billion) as of 2014. The agency analyzed all of the business reports and audit reports released through the DART system by the Financial Supervisory Service.
The number of lawsuits continues to increase, from 318 in 2011 and 336 in 2012 to 381 in 2013. At the same time, the amount of money sought in lawsuits has skyrocketed from 1.13 trillion won to 1.73 trillion won.
Of note, among the 444 cases, stock firms sat at the defendant’s seat in 344 cases, or 77.5 percent. Plaintiffs were mainly financial consumers and other stock firms or financial institutions.
By individual stock firm, Yuanta Securities (the former Tongyang Securities) is engaged in the most lawsuits, at 88. Among them, 82 have been filed by investors, since many lost money after purchasing corporate bonds or commercial paper issued by subsidiaries of Tongyang Group following its recommendations.
Yuanta Securities is followed by NH Investment and Securities (38 cases), Hana Daetoo Securities (30 cases), Shinhan Investment (26) and Kyobo Securities (25 cases).
By litigation amount, Yuanta Securities also topped the list with 586.6 billion won followed by Deutsche Securities with 191.5 billion and Hana Daetoo with 112.2 billion won.
By John Choi (email@example.com)