The Securities and Futures Commission Reports Daewang Steel to Prosecutors for Accounting Standards Violations

[Asia Economy Reporter Park Jihwan] The Securities and Futures Commission under the Financial Services Commission held a regular meeting on the 21st and decided to report Daewang Steel to the prosecution for violating accounting standards. They also resolved measures including an 8-month restriction on securities issuance, a 2-year auditor designation, and a recommendation to dismiss the CEO.

According to the Securities and Futures Commission, Daewang Steel, a wholesaler of primary metal products, falsely recorded non-existent inventory and leased assets during the period from 2011 to 2016, thereby overstating net income and equity by reducing cost of goods sold.

The Securities and Futures Commission decided on measures including reporting to the prosecution, an 8-month restriction on securities issuance, a 2-year auditor designation, and a recommendation to dismiss the CEO.

In addition, the Securities and Futures Commission also resolved to impose fines on five companies, one CEO, and seven accounting firms for violating internal accounting control regulations for the 2018 fiscal year.