 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] The Financial Services Commission has decided to impose a fine of KRW 1.47 billion on Ihwa Electric for violating accounting standards in the preparation and disclosure of its financial statements.
At its 7th meeting held on April 15, the FSC concluded that Ihwa Electric failed to properly disclose key information in its financial statements. The company issued bonds with warrants while pledging privately placed bonds it held as financial assets as collateral, but did not include this information in the notes to its financial statements.
The FSC also identified significant weaknesses in the company’s internal accounting control system, including inappropriate involvement by senior management in the financial reporting process.
In addition to the corporate penalty, the regulator decided to impose fines totaling KRW 103.8 million on three company officials, including the CEO.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
