Overstated Capital to Conceal Embezzlement... Financial Services Commission Fines Former Sports Seoul CEO and Others 1.3 Billion KRW

A total fine of approximately 1.3 billion KRW has been imposed on officials of Sports Seoul for preparing and disclosing financial statements in violation of accounting standards.

On January 28, the Financial Services Commission announced at its second meeting that, in accordance with the Act on External Audit of Stock Companies, it had decided to impose a total fine of 1.32 billion KRW on four individuals, including the former CEO of Sports Seoul.

By amount, the former executive director responsible for work execution was fined 340 million KRW, the former CEO 300 million KRW, the former vice president 340 million KRW, and the former executive in charge 340 million KRW.

According to the Financial Services Commission, Sports Seoul overstated its equity capital by failing to reflect the embezzlement of funds by its de facto owner in its 2017-2018 financial statements.

Previously, at the 20th meeting of the Securities and Futures Commission held on November 12 of last year, it was decided to impose a 12-month restriction on securities issuance for Sports Seoul, designate an auditor for three years, recommend dismissal (removal) of the former CEO and vice president, and issue corrective orders.