FSC Fines Haetae Confectionery & Foods 900 Million Won for "Accounting Standards Violations," Designates Auditor for 3 Years

Haetae Confectionery & Foods and company officials were fined approximately 1.3 billion won for violating accounting standards.

At its 18th meeting on the 21st, the Financial Services Commission decided to impose a fine of 937.8 million won and designate an auditor for three years for Haetae Confectionery & Foods, which prepared and disclosed financial statements in violation of accounting standards.

Fines of 93.7 million won each were imposed on Haetae Confectionery & Foods' CEO, its former auditor and its head of finance, while its former sales executive was fined 81 million won. The former auditor received a recommendation equivalent to dismissal, and the head of finance received a recommendation for dismissal and a six-month suspension of duties. They were reported to investigative authorities.

According to the Financial Services Commission, from 2016 to 2019, Haetae Confectionery & Foods inflated revenue and cost of sales by issuing fraudulent tax invoices and omitting accounting entries for sales discounts, among other methods.

It also included in its securities registration statements financial statements for fiscal years 16 through 18 that violated accounting standards, and obstructed the auditor's proper external audit by, among other means, presenting false transaction documentation.

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