The Securities and Futures Commission imposes fines and audit designation on TY M for 'revenue inflation'

Luxel Falsely Recorded Accounts Receivable, 12-Month Securities Issuance Ban and Fine
Rahenne Resort with Accounting Errors, Fine and 2-Year Audit Designation

The Securities and Futures Commission (SFC) under the Financial Services Commission announced on the 2nd that it has decided to designate auditors and take other measures for three listed companies on the KOSPI market, including TYM, an agricultural machinery manufacturer, for preparing and disclosing financial statements in violation of accounting standards.

TYM was found to have overstated sales and cost of sales by KRW 64.017 billion in the first half of 2022 and KRW 49.551 billion in the third quarter, resulting in fines, a three-year auditor designation, and a recommendation to dismiss the responsible executive.

Luxel, an automobile parts manufacturing and sales company, concealed false paid-in capital increase facts by falsely recording KRW 10 billion in accounts receivable from 2018 to the third quarter of 2019, receiving a 12-month securities issuance restriction and fines.

Induk Accounting Corporation, the auditor of Luxel, was also fined for negligence in audit procedures related to accounts receivable.

La Henne Resort, a golf course operator, received fines and a two-year auditor designation due to accounting errors related to borrowings and litigation provisions.

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