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Photo = Kakao mobility provided |
[Alpha Biz= Reporter Kim Jisun] The Financial Services Commission (FSC) has determined that Kakao Mobility’s alleged "revenue inflation" constitutes a case of "serious negligence" in accounting violations and is set to impose heavy penalties, including referral to the prosecution.
According to financial sector sources on the 5th, the FSC will finalize the sanctions against Kakao Mobility for accounting fraud during the Securities and Futures Commission (SFC) meeting scheduled for the 6th. The SFC is expected to classify the accounting fraud allegations as "serious negligence" and impose a fine of approximately 4 billion KRW on the company and its executives. This decision comes about seven months after the FSC initiated a review by its accounting oversight committee in April.
The anticipated specific penalties include a fine of 3.4 billion KRW for the company and 340 million KRW each for CEO Ryu Geung-seon and the former Chief Financial Officer (CFO). Additional measures will recommend the dismissal of the former CFO, impose a six-month suspension from duty, and designate an auditor for a two-year period. Furthermore, materials related to the Kakao Mobility case will be forwarded to the prosecution.
However, the FSC has not concluded that there was intent to commit accounting fraud, unlike the Financial Supervisory Service (FSS). This lack of intent is why the FSC is opting for a referral of materials to the prosecution rather than filing a criminal complaint.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
