The Securities and Futures Commission Imposes a 90 Million KRW Fine on POSCO Construction for Violating Accounting Standards

[Asia Economy Reporter Wondara] The Securities and Futures Commission under the Financial Services Commission has decided to impose a fine of 90 million KRW and a one-year auditor designation sanction on POSCO Construction.

The Securities and Futures Commission held a regular meeting on the 26th and passed this resolution.

According to the Securities and Futures Commission, POSCO Construction overstated sales and equity by directly citing subsidiary financial statements with inflated sales figures related to construction projects from 2015 to 2016 in its consolidated financial statements. By using subsidiary financial statements with overstated equity to prepare separate financial statements, it also failed to recognize impairment losses on investments in subsidiary stocks.

The Securities and Futures Commission imposed a 10% additional contribution to the joint damage compensation fund on auditor Anjin Accounting Corporation and a one-year restriction on audit work for POSCO Construction.

Meanwhile, the Securities and Futures Commission decided on sanctions against S&DK World Korea, which overstated controlling interests in subsidiaries, including a six-month restriction on securities issuance, a two-year auditor designation, and a recommendation to dismiss the CEO.