The Securities Deliberation Committee Imposes a 1-Month Securities Issuance Restriction on Seongji Construction for Violating Accounting Standards

[Asia Economy Reporter Park Jihwan] The Securities and Futures Commission under the Financial Services Commission announced on the 4th that at its regular meeting, it decided to impose a one-month restriction on securities issuance and a one-year auditor designation on Seongji Construction for preparing and disclosing financial statements in violation of accounting standards.

According to the Securities and Futures Commission, Seongji Construction was found to have underestimated the allowance for doubtful accounts by failing to reflect factors such as discounted sales of unsold units when calculating the recoverable amount of construction receivables from 2011 to 2015. Additionally, escrow deposits, which should have been recognized as provisions, were not recorded as liabilities.

On this day, the Securities and Futures Commission decided to impose additional measures on Han Young Accounting Corporation, the auditor of Seongji Construction, and its certified public accountants, including a 10% additional contribution to the joint damage compensation fund, a one-year restriction on auditing Seongji Construction, and a one-year restriction on auditing listed and designated companies.