LS Securities ordered to pay approximately 9.8 billion won in settlement recommendation for CERCG ABCP default lawsuit
Seoul High Court issued a settlement recommendation requiring Hanwha Investment Securities and LS Securities to jointly pay approximately 9.8 billion won to KB Securities in a lawsuit regarding unjust enrichment from a 2018 CERCG-related ABCP default, following a Supreme Court ruling.
LS Securities' actual share will be determined by agreed allocation among defendants, and the payment amounts to 1.12% of its consolidated equity as of end-2025.
The company plans to pay the determined amount according to legal procedures, after which the case will be closed.
While the impact on financial soundness is limited due to the small proportion of equity, the realization of legal risks from past ABCP issuance warrants investor attention.
[AI Summary]LS Securities will ultimately pay approximately 9.8 billion won in settlement of the CERCG ABCP default lawsuit, representing 1.12% of its equity. The payment will resolve long-standing legal uncertainty but result in a one-time expense reducing short-term earnings.
KOSDAQ Filing Information
Judgment Or Decision On Lawsuit, Etc. (Voluntary Disclosure: Claim Below Specified Amount)