Securities and Futures Commission Takes Auditor Designation Measures Against Young Poong, Korea Zinc, and Hangyeol LS for Accounting Violations

Three companies, including Young Poong, Korea Zinc, and Hangyeol LS, have been subject to measures such as auditor designation for violating accounting standards.

Kwon Daeyoung, Chairman of the Securities and Futures Commission (Vice Chairman of the Financial Services Commission), is speaking at the regular meeting held at the Government Seoul Complex in Jongno-gu, Seoul on August 27, 2025. Photo by Jo Yongjun

The Securities and Futures Commission under the Financial Services Commission held a regular meeting on the 10th and decided to designate an auditor for Young Poong for three years. The former CEO of Young Poong received a sanction equivalent to a recommendation for dismissal, and both former and current executives responsible were subject to recommendations for dismissal and a six-month suspension from duty.

According to the Securities and Futures Commission, Young Poong did not sufficiently recognize the costs required for the remediation of pollution in areas surrounding its smelter, forest land, and groundwater as provisions in its accounts from 2021 to 2024, and also underreported impairment losses on tangible assets resulting from the suspension of smelter operations.

Ichon Accounting Corporation and Daejoo Accounting Corporation, which were responsible for auditing Young Poong, were ordered to make additional contributions to the joint liability compensation fund at rates of 30% and 70%, respectively, and were restricted from performing audit work for the company. Five certified public accountants affiliated with these firms were penalized with restrictions on audit work and were required to undergo professional training.

Korea Zinc also received a two-year auditor designation order from the financial authorities. The executive in charge was sanctioned with a recommendation for dismissal and a six-month suspension from duty.

Korea Zinc was found to have underreported losses resulting from declines in the value of financial products and investment assets from 2022 to 2024, and to have omitted disclosures of certain related-party transactions. Furthermore, the company failed to recognize impairment losses related to overseas subsidiaries, had weaknesses in its internal accounting management system, and obstructed external audits.

The financial authorities decided to designate an auditor for Hangyeol LS for two years and referred the corporation, its former CEO, and former head of finance to the prosecution. Hangyeol LS was found to have falsely recorded inventory assets by inflating product quantities and unit prices from 2023 to 2024, and also to have underreported losses during the inventory valuation process.

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