Financial Services Commission imposes fines on Irem and others for accounting standard violations

On the 2nd, the Financial Services Commission held its 6th meeting and decided to impose a total fine of 1.02 billion KRW on KOSDAQ-listed company Irem and five individuals, including the former CEO, for preparing and disclosing financial statements in violation of accounting standards.

It was confirmed that Irem overstated the value of investment stocks in affiliated companies in its consolidated financial statements for 2019-2020, resulting in an overstatement of net income on the financial statements. At that time, despite the affiliated company recording operating losses for several years, a business plan was used without reasonable grounds that projected a significant increase in future sales.

Accordingly, the Financial Services Commission decided to impose a fine of 720 million KRW on Irem and a total of 300 million KRW on the five individuals, including the former CEO.

Additionally, the Financial Services Commission also decided to impose fines on KOSDAQ-listed companies Bonne and Wooyang HC. In the case of Bonne, which overstated inventory assets and obstructed external audits and inspections, fines totaling 27.9 million KRW were imposed on three individuals, including the CEO. Prosecutorial referral measures were also taken.

For Wooyang HC, which understated lease-related assets and liabilities, fines of 56.4 million KRW on the company, 7.6 million KRW on the CEO, and 17.5 million KRW on the auditor, Dasan Accounting Corporation, were respectively decided. Wooyang HC was unlisted at the time of the violation but was listed on KOSDAQ in March of this year.

This content was produced with the assistance of AI translation services.