Alphabiz - Volvik Fined KRW 1.77 Billion for Inflating Inventory Value

Photo courtesy of Volvik

 

 

[Alpha Biz= Kim Jisun] Volvik Co., Ltd. has been imposed a fine of approximately KRW 2 billion by financial authorities for overstating the value of its inventory.

The Financial Services Commission (FSC) announced on March 18 that it had approved a penalty of KRW 1.77 billion against Volvik for violations of accounting standards.

In addition, the company’s former CEO was fined KRW 180 million, while a former executive in charge received a penalty of KRW 110 million.

According to the FSC, Volvik manipulated inventory inflow and outflow quantities between 2017 and 2021, thereby overstating unit manufacturing costs. The company also submitted falsified inventory records to external auditors, effectively obstructing the audit process.

Anjin Accounting Corp., which served as the external auditor and was found to have been negligent in its audit procedures, was also fined KRW 170 million.

Meanwhile, the FSC imposed a penalty of KRW 50.2 million on Ekim Co. for falsely reporting sales and inventory, along with a combined KRW 15 million in fines on three individuals, including its former CEO.

 

 

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)