Securities Deliberation Committee: "Kakao Mobility Violated Accounting Rules... No Intentional Misconduct" (Update)

41 Billion KRW Fine Imposed
Business Documents Transferred to Prosecution

On the 6th, the Disclosure Review Committee held a regular meeting and decided on severe disciplinary action against Kakao Mobility for accounting violations. However, it was determined that there was no intentional wrongdoing.

The Securities and Futures Commission under the Financial Services Commission judged that Kakao Mobility violated accounting treatment related to revenue in its accounting fraud allegations. However, unlike the opinion of the Financial Supervisory Service, it concluded that there was no intentional wrongdoing. Separately, while deciding to hand over work materials to the prosecution, the disciplinary measures remained largely unchanged from the original plan.

At the 19th regular meeting on the afternoon of the 6th, the Securities and Futures Commission under the Financial Services Commission stated, "We have decided on severe disciplinary action, considering there was a serious violation of accounting standards due to gross negligence of duty."

Accordingly, a total fine of 4.14 billion KRW was imposed on Kakao Mobility (3.46 billion KRW), the CEO (340 million KRW), and the former finance executive (340 million KRW). Additionally, the former finance executive was recommended for dismissal and suspended from duty for six months, and an auditor was designated for two years.

However, it was judged difficult to conclude intentionality in the accounting treatment violation, which was the biggest point of contention. This is because three major accounting firms recognized the company's accounting treatment, and there are various factors affecting the public offering price.