[Asia Economy Reporter Ji Yeon-jin] The Securities and Futures Commission under the Financial Services Commission announced on the 13th that it has decided to sanction four companies, including Baekgwang Industrial, for falsely recording the largest shareholder loans as loans to related parties in their financial statements.
Baekgwang Industrial, a company listed on the KOSPI market, falsely recorded the company's largest shareholder loans as loans to related parties, and also falsely noted related party transaction notes by reducing assets and liabilities. Baekgwang Industrial was also investigated for obstructing external audits by submitting false debt offset agreements to auditors.
Accordingly, the Securities and Futures Commission decided to notify the prosecution about the company, its CEO, and responsible executives. The CEO was recommended for dismissal, and a one-year auditor designation measure was also decided.
Measures to impose fines on the company and related parties will be finalized at a future Financial Services Commission meeting.
On the same day, the Securities and Futures Commission also decided to impose fines and designate auditors for JSmart Global, EM Networks, and Aluco for violating accounting standards. Measures such as restrictions on audit work were also decided for accounting firms and certified public accountants who neglected audits while auditing the financial statements of these companies, thereby violating audit standards.
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