"Unrelated to the fact that the former employer is an opposition party lawmaker"
The Ministry of Land, Infrastructure and Transport has requested an investigation into Eastar Jet for submitting false accounting data.
On the 28th, the Ministry announced, "As a result of the investigation into the application and issuance process of Eastar Jet's license modification, it has been decided to request an investigation regarding the submission of false accounting data by Eastar Jet."
The Ministry explained that it is difficult to rule out suspicion that Eastar Jet intentionally tried to conceal its state of complete capital erosion, and due to strong suspicion of intentional wrongdoing, it decided to request an investigation.
Eastar Jet submitted accounting data to the Ministry that did not reflect the capital erosion status and was issued a license modification on December 15, 2021. However, according to the audit report for the end of December 2021 disclosed in May this year through the Financial Supervisory Service system, the company was in a state of complete capital erosion.
According to the investigation results, Eastar Jet prepared items such as capital stock and capital surplus based on the end of November 2021, the time of application, while the deficit item was prepared as of May 31, 2020, submitting data that showed no capital erosion. However, they did not indicate the preparation date or explain this to the Ministry.
During the investigation, Eastar Jet explained that "the data as of May 31, 2020, was submitted due to an accounting system shutdown," but it was confirmed that accounting data as of February 4, 2021, prepared by a professional accounting firm appointed by the rehabilitation court, existed.
Furthermore, even when the Ministry specifically requested accounting data for November and December last year, Eastar Jet submitted data with the deficit item prepared as of May 31, 2020, showing no capital erosion. The Ministry's position is that it is difficult to exclude suspicion that Eastar Jet intentionally tried to conceal its state of complete capital erosion.
Won Hee-ryong, Minister of Land, Infrastructure and Transport, said, "We will thoroughly investigate the suspicion that Eastar Jet deliberately submitted false data to the Ministry, obstructing the Ministry's licensing work for air transportation business, through the investigation request."
Due to this investigation request, it is expected that Eastar Jet's resumption of flights will be difficult for the time being. Eastar Jet has not operated international or domestic flights for over two years since March 2020 due to financial difficulties.
Eastar Jet, which entered corporate rehabilitation procedures in February last year amid financial difficulties, was acquired by Seongjeong Co., Ltd., a golf course management and real estate rental company. Seongjeong completed the acquisition by investing 70 billion KRW in acquisition funds and 38.7 billion KRW in operating funds.
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