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Photo = Yonhap news |
[Alpha Biz = Reporter Kim Young-taek] Harim Group is under scrutiny for significant errors in its Q2 2024 financial report, with discrepancies leading to distorted performance figures for subsidiary Harim Industrial.
On November 21, reports revealed that Harim Group listed Harim Industrial’s seasoned food (e.g., beef soup products) sales at 9.954 billion KRW in the Q2 report, marking an apparent 98.6% year-on-year increase. However, actual sales in this category were confirmed to be 7.246 billion KRW, over 2.7 billion KRW less than the reported figure.
The error stemmed from a mix-up between sales figures for seasoned foods and noodles (e.g., artisan ramen). While the report showed a 15% decline in noodle sales, the actual figure reflected a 37.4% increase, totaling 9.954 billion KRW. This misrepresentation caused Harim Industrial's growing noodle segment to be inaccurately portrayed as declining.
Adding to the concerns, Harim Group and Harim Industrial reportedly failed to detect the error until after disclosing Q3 results. Despite media criticism pointing out potential discrepancies in noodle sales, the company initially maintained that the decline was accurate.
The oversight has raised questions about Harim Group's internal controls and financial reporting processes. Particularly troubling is the company’s inability to track key performance trends for its flagship brand, The Mealkit, whose noodle division is central to growth.
The noodle segment, which generated 9.5 billion KRW in Q3 alone and accumulated 19.4 billion KRW year-to-date, has already surpassed last year’s total sales.
Observers are calling for a thorough review of Harim Group’s financial management system, noting the need for greater accuracy and transparency in reporting crucial business performance data.
Alphabiz 김영택 기자(sitory0103@alphabiz.co.kr)
