Kiwoom Securities, which experienced an unprecedented system failure causing stock order processing to malfunction for two consecutive days, has decided to suspend its services over the weekend and conduct a comprehensive system inspection.
On the 4th, Kiwoom Securities announced that from 10 a.m. on the 5th until 8 p.m. on the 6th, services including the Mobile Trading System (MTS), Home Trading System (HTS), and website will be suspended.
During this period, electronic financial transaction services, including deposits and withdrawals, will be temporarily unavailable, and account opening, non-face-to-face services, as well as checking unsettled or additional unsettled payments will not be possible.
Kiwoom Securities stated, "This work is to provide more stable services, and we ask for the understanding of our customers."
Regarding the system failure that occurred immediately after the market opened the previous day, Kiwoom Securities explained it as a "server crash due to an order surge," but actual trading volume was found to be similar to previous years.
The combined trading value of the KOSPI and KOSDAQ markets was 14.3 trillion KRW on the 3rd and 18 trillion KRW on the 4th, which was higher than usual, but still lower compared to the U.S. presidential election in November last year or the 'Black Monday' in August.
Currently, Kiwoom Securities' Information and Communication Technology (ICT) department has not identified the exact cause of the failure. Accordingly, Kiwoom Securities plans to completely halt services over the weekend to conduct a thorough inspection and normalize the system before the stock market opens next Monday.
In the securities industry, there is analysis that this service overhaul could determine Kiwoom Securities' future fate.
If a similar failure occurs after the market opens on Monday the 7th, not only will the reputation as the 'No.1 retail brokerage' be damaged, but the very existence of the company could be at risk.
Meanwhile, as system failures at securities firms have occurred consecutively recently, the Financial Supervisory Service convened the Chief Information Officers (CIOs) of the Korea Financial Investment Association and about ten major securities firms this afternoon to urge inspections for stable system operation.
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