The headquarters of Kiwoom Securities in Yeouido, Seoul / Courtesy of Kiwoom Securities
Brokerage’s outstanding receivables stand at 500 bil. won
By Anna J. Park
Kiwoom Securities’s risk management ability is being questioned once again as the brokerage, which has the largest share of the online trading market, has been hit with huge outstanding receivables due to a trading suspension of a manipulated stock, according to industry officials, Sunday.
According to the state-run electronic disclosure system operated by the Financial Supervisory Service (FSS), Kiwoom Securities reported that 494.3 billion won ($365 million) in outstanding receivables were incurred in customer consignment accounts due to the stock price plunge of Youngpoong Paper last week.
The paper company’s share price plummeted to its daily limit low last Wednesday, and trading of the stock was suspended the following day. The amount of the outstanding receivables exceeds the brokerage firm’s net profit of 425.8 billion won posted during the first half of this year. It is also about a third of Yoongpoong Paper’s current market cap.
“As of Oct. 20, the size of the outstanding receivables for the stock is approximately 494.3…
