The Securities and Futures Commission Imposes a Fine on Taekwang Industrial for Omission of Nominee Shares Disclosure

[Asia Economy Reporter Park Jihwan] The Securities and Futures Commission under the Financial Services Commission held a regular meeting on the 12th and decided to impose fines of 75.3 million KRW and 204 million KRW respectively on Taekwang Industrial for false statements in important matters of regular reports, and Lemon for violating the obligation to submit securities registration statements.

According to the Securities and Futures Commission, Taekwang Industrial, a KOSPI-listed company, had its largest shareholder holding company shares under another person's name as a nominee, but omitted these nominee shares or recorded them as owned by the named shareholder in the largest shareholder stock status in the regular report. It was found that the 'Status of Shares Owned by Largest Shareholders and Related Parties' in the 'Matters Concerning Shareholders' section of the business report and quarterly/semi-annual reports was falsely stated as 11.1% (123,753 shares) to 12.4% (138,022 shares) of the total issued shares.

Lemon conducted paid-in capital increases of common stock in March and April 2018, inviting subscription from 91 and 61 persons respectively, raising 1 billion KRW (1 million shares) and 16 billion KRW (6.4 million shares), but did not submit securities registration statements.

Additionally, the Securities and Futures Commission imposed a one-month securities issuance restriction on J Technology for violating the obligation to submit regular reports by delaying the submission of the 2017 business report.

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