“Minimize damage through reverse trading to collect receivables.”
Kiwoom Securities headquarters building
[인포스탁데일리=김영택 기자] Kiwoom Securities is being criticized for insufficient risk management as its receivables due to the Youngpoong Paper low price situation are approaching 500 billion won.
In the case of Kiwoom Securities, the stock margin rate is set low, so it is highly likely that it will be abused for market manipulation.
According to the securities industry on the 22nd, Kiwoom Securities announced that after the market closed on the 20th, receivables of 494.3 billion won were incurred in customer consignment accounts for Youngpoong Paper.
The amount of receivables announced by Kiwoom Securities is equivalent to one-third of Youngpoong Paper’s market capitalization. In addition, it is a large amount comparable to Kiwoom Securities’ accumulated operating profit of 569.7 billion won in the first half of this year.
Kiwoom Securities announces occurrence of receivables at the lower limit price of Youngpoong Paper. Data = DART
Youngpoong Paper is a stock whose stock price has risen more than 700% this year, and suspicions have been continuously raised about its stock price.
In fact, there were media reports that financial authorities and prosecutors began arresting four people involved in illegal stock price manipulation on the 19th.
From the 18th, Youngpoong Paper’s stock price plummeted to its lowest price, and trading was suspended by the financial authorities from the 19th.
Kiwoom Securities plans to minimize damage through reverse trading to recover receivables amounting to 500 billion won.
In addition, the final amount of receivables may be reduced, and if any losses and difficulties are confirmed, it will be transparently re-announced.
Accounts receivable are a type of credit value that arises when an investor fails to repay the amount of an outstanding transaction. If the investor fails to pay this credit value (settlement amount), the securities company forcibly disposes of the stocks to collect them, which is called a reverse sale.
In particular, unlike other major securities companies, Kiwoom Securities suffered significant damage because the margin rate for stocks was set very low, which is why it can be widely abused for market manipulation.
Mirae Asset Securities, Korea Investment & Securities, NH Investment & Securities, Samsung Securities, KB Securities, and Shinhan Investment & Securities raised the margin for Youngpoong Paper to 100% from the beginning of this year to last July.
On the other hand, Kiwoom Securities maintained the margin rate at 40% until the 18th, when the Youngpoong Paper lower limit price incident occurred.
Afterwards, when the financial authorities began suspending transactions for Youngpoong Paper, it was adjusted upward to 100% only on the 19th.
The margin rate refers to the ratio of the deposit to the transaction amount. If a securities company sets the margin rate at 100%, the stock can only be purchased with cash, blocking pending transactions.
The reason why securities companies often restrict credit loans, mortgage loans, and receivable transactions is because unreasonable debt investments can lead to receivables if investors incur losses.
To prevent this, we proactively manage risk by raising the margin rate for risky items such as rapid fluctuations in stock prices and market manipulation.
Youngpoong Paper stock price trend. Data = Naver
In particular, in the case of Youngpoong Paper, its stock price soared more than 12 times in 11 months, and its price-to-earnings ratio (PER) exceeded 300 times, making it an ideal stock.
Some have criticized Kiwoom Securities’ internal control system as not functioning properly.
Meanwhile, the recent reverse trading amount in the domestic stock market recorded 276.8 billion won on the 18th and 525.7 billion won on the 19th.
Recently, the average daily reverse trading amount was around 53 billion won, but the previous day’s reverse trading instantly increased tenfold.
This is the largest amount since the Korea Financial Investment Association began compiling related statistics in 2006, and this is the first time that receivables exceed 1 trillion won.
Reporter Kim Young-taek [email protected]
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2023-10-22 03:32:49
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