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Photo = Financial Services Commission |
[Alpha Biz= Paul Lee] South Korea’s financial authorities have imposed a total of 13.2 billion won in administrative fines on former executives of Sports Seoul for preparing and disclosing financial statements in violation of accounting standards.
The Financial Services Commission (FSC) said on January 28 that it decided at its second regular meeting to fine four former Sports Seoul officials, including the company’s former CEO, under the Act on External Audit of Stock Companies.
The fines were imposed as follows: 3.4 billion won on a former executive responsible for business execution directives, 3.0 billion won on the former CEO, 3.4 billion won on the former vice president, and 3.4 billion won on a former executive in charge.
According to the FSC, Sports Seoul failed to reflect embezzlement of company funds by its de facto owner in its financial statements for 2017–2018, resulting in an overstatement of shareholders’ equity.
Previously, at its 20th meeting held on November 12 last year, the Securities and Futures Commission resolved to impose additional sanctions on Sports Seoul, including a 12-month restriction on securities issuance, the designation of an external auditor for three years, recommendations for dismissal of the former CEO and vice president, and corrective orders.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
