[Alpha Biz= Paul Lee] Seoul, October 1 – South Korea’s Financial Services Commission (FSC) announced that it has imposed a KRW 1.49 billion fine on SOOP, a KOSDAQ-listed company, for violating accounting standards in the preparation and disclosure of its financial statements.
At its 17th meeting on October 1, the FSC also levied a combined KRW 54.2 million in fines on the company’s former CEO and a responsible executive.
Details of Violation
According to the FSC, SOOP overstated operating revenues and expenses. The company should have applied the net method—offsetting related revenues and expenses before recognition—but instead applied the gross method, recognizing revenues and related expenses separately. This resulted in inflated figures for both operating revenue and operating expenses.
Additional Sanctions
Sejin: fined KRW 180 million, with the CEO and a former executive each fined KRW 17.7 million.
Shingi Tech: fined KRW 30 million, with its CEO personally fined KRW 3 million.
The FSC emphasized that the penalties reflect its commitment to ensuring transparent corporate disclosures and maintaining market trust in financial reporting.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
