Securities and Futures Commission Imposes Auditor Designation and Fines on Geumyang for "Violation of Accounting Standards"

On September 2, financial authorities decided to designate external auditors for Geumyang and impose fines, citing violations of accounting standards.

The Securities and Futures Commission under the Financial Services Commission announced that it had resolved to take actions such as designating external auditors for Geumyang, which had prepared and disclosed financial statements in violation of accounting standards.

According to the findings of the investigation and supervisory review released that day, Geumyang recognized false sales by issuing and receiving fake tax invoices, among other methods, to make it appear as if physical inventory assets had been sold when, in fact, no such transfers had taken place.

Additionally, the company is found to have overstated its equity capital through consolidated accounting, despite jointly controlling its Mongolian subsidiary through contracts with the second-largest shareholder and other shareholders.

Geumyang also hindered external audits by submitting false transaction documentation and providing false information during the review process.

As a result, the Securities and Futures Commission imposed a three-year designation of external auditors, levied fines against the company and related parties, made recommendations for dismissal (removal) of one former executive in charge of sales and one other person, recommended the dismissal (removal) and six-month suspension of the CEO and three other individuals.

Furthermore, Sunjin Accounting Corporation, which was responsible for audit work, was ordered to make an additional 20% contribution to the Joint Compensation Fund, among other measures.

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