FSC Imposes W1.3 Billion in Fines on Haitai Confectionery and Officials for Accounting Violations

The Financial Services Commission (FSC) has decided to impose approximately 1.3 billion won in fines on Haitai Confectionery & Food and related company officials for drafting and disclosing financial statements in violation of accounting standards.

During a meeting today (October 21), the FSC resolved to impose fines of 937.8 million won on the company, 93.7 million won each on the CEO, former auditor, and head of the finance department, and 81 million won on a former sales executive.

In addition, penalties were issued including a three-year designation of an external auditor, a recommendation to dismiss and a six-month suspension of duties for the head of the finance department, and a recommendation to dismiss the former auditor.

Measures were also taken to report the head of the finance department and the former auditor to investigative authorities.

The company overstated its sales and cost of goods sold through methods such as issuing false tax invoices or omitting the accounting treatment for sales discounts and rebates.

It was also uncovered that the company used financial statements that violated accounting standards in its securities registration statements, obstructed external audits by presenting false transaction evidence to the auditor, and asked business partners to send false responses to accounts receivable confirmation requests.

(Photo: Provided by Yonhap News TV, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.