The Securities and Futures Commission Approves CCS Chungbuk Broadcasting's Prosecution Referral and Audit Designation

[Asia Economy Reporter Park Jihwan] The Securities and Futures Commission under the Financial Services Commission announced on the 25th that at the 21st meeting, it resolved to take measures such as prosecutorial referral and auditor designation against CCS Chungbuk Broadcasting for preparing and disclosing financial statements in violation of accounting standards.

The Securities and Futures Commission pointed out that CCS Chungbuk Broadcasting made payments for construction work to related parties who did not actually perform the work, falsely representing that the construction had been carried out, and accounted for fictitious transactions.

It also uncovered that the company overstated tangible assets, depreciation expenses, and input VAT. The amount of false recording of tangible assets from 2014 to 2017 totaled 16.4 billion KRW.

Additionally, issues such as overstating tangible assets through excessive goodwill and construction payments, failure to disclose related party transaction notes, and false statements in the securities registration statement were also pointed out.

The Securities and Futures Commission imposed a fine of 16 million KRW on the former CEO of CCS Chungbuk Broadcasting and resolved to designate an auditor for three years. Furthermore, the company and three individuals including the former CEO were referred to the prosecution.