The Securities and Futures Commission, under the Financial Services Commission, announced on the 23rd that at its 8th meeting, it resolved to notify the prosecution, impose a fine, and designate an auditor for two years as measures against Panakeia for preparing and disclosing financial statements in violation of accounting standards.
From 2018 to the third quarter of 2019, Panakeia acquired bonds with warrants (BW) issued by a subsidiary that was in a state of complete capital impairment. Furthermore, despite there being no possibility of recovery, the company accounted for these bonds as normal assets, thereby overstating net profit and equity by 4.9 billion KRW.
The Securities and Futures Commission decided to impose fines on the company and five related individuals, recommend the dismissal of the former chief financial officer, notify the prosecution regarding the company and the former chief financial officer, and designate an auditor for two years. In addition, for Yejih Accounting Corporation and its certified public accountant, who violated audit standards while auditing the company’s financial statements, the commission decided to restrict their audit work for the company and other listed companies.
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