The Audit Committee Sanctions Osstem Implant for 'Accounting Standards Violations'... Recommends Dismissal of CEO

The Securities and Futures Commission under the Financial Services Commission announced on the 11th that it has recommended the dismissal of the CEO of Ostem Implant.

According to the Securities and Futures Commission, Ostem Implant incurred losses from trading stocks with company funds in September 2020 but failed to account for approximately 15.131 billion KRW related to this in its financial statements.

Additionally, in the second and third quarters of 2021, embezzled funds of 45 billion KRW each were reported as cash and cash equivalents in the financial statements.

Accordingly, the Securities and Futures Commission resolved to impose fines, recommend the dismissal of the CEO, notify the prosecution (for accounting violations and refusal to submit documents), and issue correction orders.

Furthermore, the Securities and Futures Commission also took measures such as restricting audit duties against Seohyun Accounting Corporation and its affiliated accountants.