The Financial Services Commission's Securities and Futures Commission (SFC) has reported DI Dongil to the prosecution on charges of violating accounting standards.
On the 20th, the SFC held its 20th meeting and resolved to refer DI Dongil to the prosecution for preparing and disclosing financial statements in violation of accounting standards, along with imposing fines and designating audit restrictions for three years. The amount of the fine will be finally determined by the Financial Services Commission in the future.
It was investigated that DI Dongil included companies that were not subsidiaries subject to consolidation from 2015 to 2019 in the consolidation scope, thereby overstating equity, income, and expenses. The scale of overstatement amounted to 97.771 billion KRW in 2015, 103.076 billion KRW in 2016, 111.553 billion KRW in 2017, 102.221 billion KRW in 2018, and 105.154 billion KRW in 2019. Additionally, it was found that deferred corporate tax liabilities were either understated or overstated.
Regarding Shinhan Accounting Corporation and one certified public accountant who neglected audit procedures for DI Dongil, fines, audit work restrictions, and prosecution investigations were resolved.
Meanwhile, the Korea Exchange announced through a disclosure on the same day that DI Dongil has triggered grounds for a substantive review of listing eligibility and suspended trading from the 21st.
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