The Securities and Futures Commission Imposes Fine on RSUPPORT for Accounting Violations

[Asia Economy Reporter Park Jihwan] The Securities and Futures Commission under the Financial Services Commission announced on the 25th that at the regular meeting held on the 24th, it imposed a fine of 432.7 million KRW and other measures on Kosdaq-listed company RSUPPORT for violating accounting standards.

According to the Securities and Futures Commission, RSUPPORT, a company specializing in non-face-to-face and remote solutions, overstated its investment in affiliates' stocks from 2015 to 2017 by not reflecting impairment losses due to the decline in the value of investee companies' stocks invested through affiliates. The Commission decided to impose a fine of 432.7 million KRW on RSUPPORT, designate an auditor for two years, and recommend the dismissal of the responsible executive.

Samjong Accounting Corporation, which neglected audit procedures for RSUPPORT, was ordered to additionally contribute 20% to the joint compensation fund and was restricted from auditing RSUPPORT for two years. Three certified public accountants who were in charge of the external audit received sanctions including restrictions on auditing RSUPPORT.

GigaRain, a manufacturer of special-purpose machinery, was pointed out for overstating sales and development costs from 2014 to 2019, errors in sales period recognition, and failure to disclose related party transactions in the notes. The Securities and Futures Commission imposed a fine of 96.6 million KRW and designated an auditor for two years on GigaRain.

Ichon Accounting Corporation, which neglected audit procedures for GigaRain, was ordered to additionally contribute 30% to the joint compensation fund and was restricted from auditing GigaRain for two years. Three certified public accountants who were in charge of the external audit received sanctions including restrictions on auditing GigaRain.