The Securities and Futures Commission Notifies Prosecutors and Imposes 130 Million KRW Fine on E-Csys for Violating Accounting Standards

[Asia Economy Reporter Park Jihwan] The Securities and Futures Commission under the Financial Services Commission announced on the 16th that it held a regular meeting and resolved to file a criminal complaint against ECS for violating accounting standards. It also decided on measures including a fine of 130 million won and a two-year designation of an auditor.

According to the Securities and Futures Commission, ECS changed expense items to acquisition of tangible assets during the period from 2015 to 2020 and accounted for them as such, resulting in an overstatement of tangible assets. It was also revealed that by recognizing the product value, which included raw material costs, as sales revenue, ECS overstated both sales revenue and cost of sales.