[Alpha Biz= Reporter Kim Sangjin] The Financial Supervisory Service (FSS) is conducting a second raid on SK Hynix as part of its investigation into allegations of inflated listing by semiconductor design company Fadu.
On the 4th, financial industry sources reported that the FSS's Capital Market Special Judicial Police conducted a search and seizure operation at SK Hynix's offices in Jung-gu, Seoul. This follows a previous raid in April where the FSS secured materials related to Fadu's listing from SK Hynix's headquarters.
SK Hynix is Fadu's largest customer. The FSS is comparing internal documents from Fadu with materials from SK Hynix to verify Fadu's revenue estimates and secure additional evidence.
Fadu was valued at over 1 trillion KRW when it listed on the KOSDAQ market through a technology exception in August last year. However, controversy arose when its Q2 revenue amounted to only 59 million KRW, significantly falling short of the 120.3 billion KRW annual revenue projected in its IPO prospectus. Fadu's actual annual revenue last year was 22.47 billion KRW.
The FSS is investigating whether Fadu intentionally concealed its poor performance and pushed through its listing despite the discrepancies.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
