Kyobo Life Insurance Submits Petition to the Financial Services Commission, Financial Supervisory Service, and the Korean Institute of Certified Public Accountants

[Asia Economy Reporter Oh Hyung-gil] Kyobo Life Insurance has submitted a petition to the Korean Institute of Certified Public Accountants requesting strict disciplinary action against Deloitte Anjin Accounting Corporation and its affiliated accountants. This is an additional action following the submission of a petition to the Financial Services Commission and the Financial Supervisory Service.

According to the insurance industry on the 25th, last month the prosecution indicted employees of the consortium including Affinity Equity Partners, IMM PE, Baring PE, and the Singapore Investment Corporation, as well as three accountants belonging to Anjin Accounting Corporation, on charges of violating the Certified Public Accountant Act related to false reporting and improper solicitation during the preparation of Kyobo Life Insurance's valuation report.

The accounting firm and accountants are accused of accepting requests to conduct valuations according to the evaluation methods and prices determined to favor the Affinity consortium, and participating in the clients' plan to obtain unfair gains. It is also known that circumstances were detected indicating a promise to receive other future assignments in this process.

Kyobo Life Insurance claimed that they also violated the Korean Institute of Certified Public Accountants' regulations and ethical standards, which require independence and good faith principles in performing certification work.

A Kyobo Life Insurance official said, "We earnestly hope that this additional petition will provide an opportunity to correct the accounting firm's wrongful practices and prevent further innocent victims from occurring," adding, "Allowing such illegal acts as a practice by the Korean Institute of Certified Public Accountants, despite the prosecution's investigation revealing illegal activities and indictments, shakes the foundation of the capital market."

Earlier, Kyobo Life Insurance submitted a petition to the financial authorities regarding Deloitte Anjin Accounting Corporation and its affiliated accountants, stating, "There is considerable damage including tangible and intangible economic losses and confusion caused by the illegal acts of Anjin Accounting Corporation and the Affinity consortium," and "Not only has the company's stability and reputation declined, but serious negative impacts have also occurred across overall business operations."