Ilyang Pharmaceutical has been fined 7.5 billion won for violating accounting standards.
On November 5, the Financial Services Commission decided to impose fines on Ilyang Pharmaceutical and SDM, among others, at its 19th regular meeting.
From 2014 to 2023, Ilyang Pharmaceutical included companies that were not subject to consolidation as subsidiaries in its financial statements. Through this, it overstated its consolidated net income and consolidated equity. The company also obstructed a proper external audit by submitting forged documents to its auditor.
The Financial Services Commission imposed a fine of 6.23 billion won on Ilyang Pharmaceutical. Two co-CEOs were fined 620 million won and 430 million won respectively, and one executive in charge was fined 210 million won. In addition, the company was ordered to have an auditor designated for three years. The two co-CEOs and the executive in charge were also given severe disciplinary measures, including a recommendation for dismissal, suspension from duties for six months, and notification to the prosecution.
SDM was found to have violated accounting standards by recognizing construction revenue and expenses using a method other than the percentage-of-completion method from 2019 to 2022. The company was fined 39.5 million won, and its CEO was fined 3.9 million won.
Jipyung, the accounting firm in charge of external audits, was found to have neglected audit procedures. It was also found to have violated regulations limiting consecutive audits by the same director, and was fined 3.9 million won and ordered to contribute an additional 60% to the joint compensation fund.
Audit work for SDM will be restricted for four years. Three certified public accountants belonging to the firm will be restricted from audit work for one year.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
