The Securities and Futures Commission under the Financial Services Commission held its 5th meeting on the 12th and resolved to notify the prosecution, impose fines and penalties, and designate an auditor for three years on Setopia, a KOSDAQ-listed company, for preparing and disclosing financial statements in violation of accounting standards.
Setopia, a steel manufacturing company, accounted for the subscription payment of convertible bonds with warrants issued by its subsidiary in 2019 as paid, despite the payment not being made, resulting in an overstatement of financial assets and liabilities by approximately 8 billion KRW.
The company was fined 270 million KRW and penalized with a 100 million KRW administrative fine, and a three-year auditor designation was also imposed.
The Securities and Futures Commission recommended dismissal for the former responsible executive of Setopia, notified the prosecution regarding the company, the former CEO, and the former executive director, and also resolved to issue corrective orders.
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