[Public Notice+] GemVax, Auditor's Opinion 'Unqualified'... "Investment Warning Designation Due to Accounting Recognition Differences"

[Asia Economy Reporter Hyunseok Yoo] GemVax & Kael announced on the 19th that it received an 'unqualified' audit opinion on its 2019 financial statements from Samil Accounting Corporation.

However, it was designated as an investment caution item according to detailed regulations of the stock exchange. The company explained that this was caused by a simple difference in recognition with the auditor regarding the accounting treatment of financial product valuation losses, and there are no special sanctions on stock trading.

A GemVax representative stated, "Until now, loss evaluations were conducted through external professional appraisal agencies, but during the auditor's review process, some modifications were made to the evaluation results. However, this does not correspond to a lack of internal control related to significant company assets or fund outflows." He added, "In the future, we will enhance completeness by utilizing multiple appraisal agencies for the evaluation of complex financial products such as convertible bonds, and supplement internal processes that allow for prior review."

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