Financial Services Commission imposes 1.3 billion won fine on Hanil Jin-gong for inflating net profit through accounting violations

[Asia Economy Reporter Park Jihwan] The Financial Services Commission announced on the 4th that it held the 4th meeting of this year and decided to impose a fine of 1.325 billion KRW on Hanil Jinkong for preparing and disclosing financial statements in violation of accounting standards, constituting false statements of important matters in the business report under the Capital Markets Act.

Earlier, at the Securities and Futures Commission meeting held on January 22, measures such as a two-year auditor designation were decided.

Hanil Jinkong was found to have understated derivative asset values on a consolidated basis by at least 27.7 billion KRW and up to 51.9 billion KRW from the end of 2016 through the first half of 2018.

Additionally, during the fiscal periods from 2016 to the first half of 2018, accounting errors were made regarding equity-method investments in affiliates. Through this, evaluation gains and losses were overstated by approximately 1.7 billion to 7.6 billion KRW. Furthermore, the Financial Services Commission pointed out violations including false statements in securities registration statements and errors in disclosure documents related to small-scale public offerings concerning Hanil Jinkong.

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