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Photo: FSC |
[Alpha Biz= Kim Jisun] On Monday, the Financial Services Commission (FSC) held its 23rd regular meeting and announced penalties against BNK Kyongnam Bank, Orient Bio, and Arc Solutions (formerly Prostemics) for violating accounting standards.
BNK Kyongnam Bank was fined 3.61 billion KRW and will be subject to a one-year external auditor designation. Four former executives, including the ex-CEO, were also fined a total of 790 million KRW. The bank had overstated its capital by approximately 100 billion KRW in 2021 due to improperly reflecting employee embezzlement in its financial statements.
Orient Bio, a KOSPI-listed company, received a fine of 110 million KRW, a three-year auditor designation, and disciplinary actions against its executives, including a six-month suspension. The company overstated and understated revenue and underreported allowance for doubtful accounts between 2018 and 2019.
Arc Solutions, a KOSDAQ-listed company, was fined 460 million KRW, with a three-year auditor designation. The company and three former executives were referred to the prosecution. Arc Solutions fabricated sales figures and obstructed audits by temporarily borrowing inventory to conceal discrepancies during inspections.
Additionally, Daeyoung Accounting Firm and a certified public accountant involved in Orient Bio’s audits were fined 82 million KRW and faced auditing restrictions.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
