Kyobo Life "Anjin Accounting Corporation's Regulatory Violations Reported to US Accounting Oversight Board"

[Asia Economy Reporter Changhwan Lee] Kyobo Life Insurance announced on the 28th that it has submitted a petition to the Public Company Accounting Oversight Board (PCAOB) in the United States, requesting strict disciplinary actions against Deloitte Anjin LLC and certified public accountant Mr. A affiliated with the firm.

This is due to Deloitte Anjin LLC's violation of laws and regulations during the process of valuing Kyobo Life Insurance's stock value.

Kyobo Life Insurance explained that during the process in late 2018 when the Affinity Consortium (Affinity, IMM, Baring, GIC) exercised a put option to Chairman Shin Chang-jae of Kyobo Life Insurance, the accountants from Deloitte Anjin LLC, who were the valuation agency, are suspected of violating the Certified Public Accountant Act and the Code of Ethics for Certified Public Accountants by improperly valuing the stock.

Kyobo Life Insurance stated that the shareholder dispute in 2020 originated from the overvalued stock valuation report prepared by Deloitte Anjin LLC, and filed a criminal complaint with the prosecution against three Deloitte Anjin accountants and two executives from Affinity on charges of violating the Certified Public Accountant Act.

Shortly after their indictment by the prosecution, in February of last year, Kyobo Life Insurance submitted a petition to the Korean Institute of Certified Public Accountants, claiming that the Deloitte Anjin accountants violated the Institute’s regulations and ethical codes, which require independence and the principle of good faith.

However, the Korean Institute of Certified Public Accountants responded that “complaints cannot be accepted or processed while court litigation is ongoing,” and advised to resubmit the complaint with supporting documents after the litigation concludes.