Stock beginners in their 60s “After believing in a brokerage employee, investing 500 million won…”

Mr. A in his 60s, formerly a public company executive. Mr. A, who retired at the end of 2015, was keen to hear that one day he made money from a friend from stocks.

When I was at a company, I had no stock experience at all, so I was indifferent, but after leaving the company, I had no income other than retirement pension.

Mr. A went to the Yuanta Securities Gangnam Center, who accidentally caught his eye when he heard a friend’s saying, “I will recommend the stock, try it for experience.”

At this meeting, employee B was introduced. Mr. B recommended one bio stock, explaining the stock fluently as an expert. He said the future market performance prospects are good.

Mr. A put 50 million won into a stock account for the first time in his life. It was August 2016.

The month after opening the account, Mr. A called Mr. B and bought two items recommended by his friend. It was his first stock sale.

But a few days later, he found out that there were other items in his account besides the ones he ordered. It was the sport that Mr. B recommended.

“At the time, I had no stock experience, so I didn’t know how Mr. B bought it,” he said. “When I asked Mr. B what happened, he said that it would improve by mentioning the possibility of developing a new drug and approving the FDA (US Food and Drug Administration). “I said.

Initially, both the stocks he bought and the stocks recommended by Mr. B were both profitable. Accordingly, the investment amount increased, and a total of 490 million won was deposited by August of the following year.

In addition to his bank balance, he canceled his retirement pension and received a loan. The deposit was also deposited without his wife’s knowledge.

In the early stages of investment, as Mr. B said, account assets increased. In October 2017, after a few months, the profit reached 160 million won, and as Mr. B said, it seemed that it could be “made up to 1 billion won”.

But that was it.

Profits declined, and principal losses began to occur in early 2018. B’s first stock bought a profit of tens of millions of won, but the problem was with the shipping-related stocks that he bought afterwards.

As he became anxious over the loss, the phone call with Mr. B became frequent.

“It was a stock that I didn’t know. There were times when I lost money, but I still made a profit, and I believed that whenever Mr. B made a call, I could recover quickly,” he said.

The loss did not recover, but rather increased. It exceeded a billion units.

“I had to quit at that time, but even in the situation where the loss was growing, Mr. B continued to talk only to the good side. I was worried about interest as I learned that I was selling credit (financial),” he said.

It was anxious, but I had to believe it. “B is good at explaining business prospects and other convincing things, and since he lost the principal, he couldn’t miss it in order to recover.”

Finally, the balance shrank to tens of millions of won. The current balance is 20 million won. In the aftermath of the new coronavirus infection (Corona 19) in 2020, only 5 million won remained.

The relationship between Mr. A and Mr. B continued until October 2020. Mr. B has moved to several branches in the meantime, but the transaction continued.

At the end of 2019, Mr. B, who was in a hurry of a big loss, said that he ran an accredited certificate. He said he would do the transaction himself, not at the branch of a brokerage company. “I had to give you a certificate just because the loss increased and he recovered it,” he said.

However, it did not recover.

Thinking that it couldn’t be done anymore, Mr. A only pulled out the sales specifications in August of last year. In the meantime, I have learned that the total trading amount is close to 10 billion won.

The number of trading items is 45 over 4 years. “There was nothing I bought other than the two stocks I bought for the first time as a friend recommendation,” A claimed.

Even though he did not ask for it, Mr. B made a random order for 43 items. Discretionary trade is illegal under the current law.

Until now, interest on credit loans alone reached 96 million won, and fees (including transaction tax) amounted to 130 million won. With about half of the total loss, I thought that in fact, only the brokerage company was doubled.

He judged that it was difficult to recover from his losses, and complained to Mr. B. The brokerage company also filed a complaint. Mr. B admitted some of his faults and offered to give him tens of thousands of won.

Securities companies also admitted some mistakes. However, he replied that he would compensate 20 million won only for the part where there was too much trading.

The securities company said, “It wasn’t just buying and selling stocks at random, but by consulting with Mr. A or making a follow-up report. Mr. A made an order for nearly thirty times with the mobile trading system,” he said. He explained that the transaction was successful.

He said, “However, there is a point in which stocks that were bought on credit before and after March, when stocks plummeted due to Corona 19 last year, were over-traded in Mr. A’s account, and we plan to compensate for this.”

For Mr. A, the amount was quite insufficient compared to the amount of damage.

Accordingly, in January, a complaint was also filed with the Financial Supervisory Service, but only a reply was returned saying that it was “subject to self-regulation,” asking for direct adjustment with a securities company.

Mr. A must have a difficult dispute with a brokerage company over the subject of responsibility for the loss.

“I couldn’t tell my family or friends, and I was stressed for years,” he said. “If I quit even when I had only 350 million won, or 250 million won left, I wouldn’t have made such a big loss,” he left only a belated regret.

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