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STX Headquarters. (Photo = STX) |
[Alpha Biz= Kim Jisun] The Financial Services Commission (FSC) announced on the 17th that it has imposed a total fine of ₩3.66 billion on STX and its affiliate STX Marine Service for failing to properly account for overseas litigation-related liabilities in their financial statements.
At its 16th meeting, the FSC decided to levy fines of ₩2.01 billion on STX and ₩1.21 billion on STX Marine Service for preparing and disclosing financial statements in violation of accounting standards. In addition, STX’s CEO was fined ₩200 million, while the former CEO of STX Marine Service and another executive were fined a combined ₩240 million.
Earlier in July, the Securities and Futures Commission (SFC) had resolved to impose fines, designate outside auditors for three years, and recommend the dismissal and six-month suspension of the CEOs. The case was also referred to prosecutors.
According to the SFC, STX deliberately omitted provisions and contingent liabilities related to overseas litigation from its financial statements, despite accounting standards requiring such recognition or disclosure once lawsuits are filed. The unrecorded liabilities were estimated at approximately ₩97.5 billion in 2022 and ₩44.2 billion in the first quarter of 2023.
The company was also found to have submitted a false securities registration statement on July 18, 2023, by using financial statements that violated accounting standards. Furthermore, STX obstructed external audits by excluding details of pending lawsuits from materials provided to auditors.
STX Marine Service committed similar violations, failing to disclose provisions and contingent liabilities related to both ongoing and lost overseas litigation cases, with unrecorded liabilities reaching ₩97.5 billion in 2022. The company was also accused of concealing litigation details from external auditors.
Meanwhile, STX has filed for an injunction to suspend the SFC’s sanctions with the Seoul Administrative Court. The court granted the request, temporarily halting the enforcement of measures such as the CEO dismissal recommendation.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
