On the 9th, officials were busy moving in the corridor of the Financial Services Commission at the Government Seoul Office in Jongno-gu, Seoul, where the financial authorities decided to include mortgage loans (Judaemae) in the 'debt refinancing' infrastructure scheduled to be launched in May by the end of the year. The financial authorities explained that they aim to reduce the interest burden on mortgage loans by establishing a debt refinancing platform that allows users to compare loan interest rates across the financial sector at a glance and switch loans easily. Photo by Dongju Yoon doso7@
The Securities and Futures Commission under the Financial Services Commission announced on the 28th that it has resolved to designate auditors for CNPlus and Gyeyang Electric for violating accounting standards.
CNPlus falsely recorded sales of 2.057 billion KRW, pretending to be engaged in the used mobile phone trading business to inflate its 2018 operating performance. Additionally, it was found to have overstated net income for the current period by 5.899 billion KRW and 499 million KRW in the first quarters of 2019 and 2020, respectively, related to the sale of tangible assets.
The Securities and Futures Commission resolved penalties including fines, a two-year audit suspension, recommendations for dismissal of former executive officers, recommendations for removal of former responsible officers, and corrective actions.
Gyeyang Electric overstated its equity capital by 54.55 billion KRW from 2017 through the third quarter of 2021. During this process, a finance officer embezzled funds from the corporate account to their personal account and accounted for it as accounts payable and accrued expenses, but Gyeyang Electric failed to identify this. The Securities and Futures Commission resolved a fine of 352.9 million KRW and a three-year audit suspension.
Fines for individual companies will be decided later by the Financial Services Commission.
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