Scammers Lure Investors With Samsung Electronics EB Despite Presidential Warnings

"Tempting Offers to Buy Samsung Electronics EB at Prices Below Current Market Value"
Do Not Be Deceived by Such Messages?Report Them Immediately

Illegal financial investment phishing messages are rampant, luring investors with claims that they can purchase Samsung Electronics' exchangeable bonds (EB) at a low price. Financial authorities have advised that if you receive such a message, you should not click on the URL and should report it immediately.

According to the financial investment industry on August 1, text messages have recently been circulating, claiming that a limited supply of Samsung Electronics EBs is available.

These messages state, "KOSPI number one, Samsung Electronics with a market capitalization of 429 trillion won! Opportunity to secure at up to 45% lower than the current market price!" The phishing message advertises the price of Samsung Electronics EB as 43,000 won, promoting it as a chance to buy Samsung Electronics shares at a cheap price.

According to FnGuide, since 2015, the only listed companies that have issued EBs based on Samsung Electronics shares are VenueG and Sejong Telecom. VenueG issued its first EB worth 20 billion won in July last year. The exchange target is Samsung Electronics shares, and the exchange price is 94,000 won. The exchange request period runs until July 6, 2026.

Sejong Telecom also issued its ninth EB based on Samsung Electronics shares in May 2023, but it has since been redeemed. The exchange request period for this EB was until April 30 this year, and the maturity date was May 31. The exchange price for this EB was 76,200 won. The details from these listed companies are different from those in the phishing messages.

An EB is a bond that grants the right to exchange it for shares of another company or treasury shares held by the issuing company. Unlike convertible bonds (CB), EBs are characterized by the exchange of existing shares. For example, if an investor holds an EB, they can either receive the relevant shares at the exchange price during a certain period or request redemption.

Investor caution is especially needed as damages from phishing messages have been continuously increasing recently. Last year, the Korea Internet & Security Agency (KISA) detected 2,196,469 cases of smishing, a more than fourfold increase compared to 2023.

To prevent consumer damage from illegal financial investments, the Financial Supervisory Service (FSS) implemented a "Spam Message Reception Block Refinement Plan" in December last year in cooperation with KISA and the three major mobile carriers (SKT, KT, LGU+). As a result, reports of spam messages related to illegal investments in the first quarter decreased by 66.4% compared to the previous quarter.

However, the FSS explained that it is difficult to completely block phishing messages. An FSS official said, "We are working to block them at the sending stage, but new messages keep appearing by altering keywords or using new burner phones," and added, "If website addresses in the messages are confirmed to be illegal, we cooperate with the relevant authorities to take them down."

Therefore, the FSS emphasizes that recipients should not click on links in such messages and should report them immediately if they suspect illegality. The official explained, "We are continuously promoting that people should not be deceived by messages impersonating financial companies or offering cheap IPO shares, and should not click on any URLs."