National Tax Service to Request Jeonguiyeon to Correct Accounting Errors and Reissue Disclosure

[Asia Economy Reporter Yoo Hyun-seok] The National Tax Service (NTS) is expected to request corrections regarding accounting errors in Jeongui Gieok Yeondae (hereafter Jeonguiyeon).

An NTS official stated on the 12th, "After reviewing the accounting issues raised by the media concerning Jeonguiyeon, several errors were identified," adding, "We plan to request a restatement after corrections."

According to regulations, about 10,000 public interest corporations disclose their financial statements every April, and the NTS reviews their settlement details. If errors are found, the NTS instructs them to restate within a month starting from July.

This means Jeonguiyeon will be included among those required to restate in July this year.

Regarding the accounting errors found by the NTS, there is a discrepancy in the carried-over revenue between the 2018 and 2019 donation collection and expenditure statements. The 2018 donation collection and expenditure statement recorded 2.273 billion KRW in donation revenue carried over to 2019. However, the same item in last year's statement showed the carried-over revenue as "0 KRW."

In 2018, Jeonguiyeon spent 33,398,305 KRW in donations on various projects, but the disclosed settlement documents only recorded the brewery "The Ob Brewing Co., Ltd.," which operates "Octoberfest," as the pub expenditure, causing misunderstandings. Additionally, the number of beneficiaries in the victim support project was recorded as 99 and 999 in the donation usage details, which the NTS also judged to be errors. An NTS official explained, "We have not determined whether there was intentional accounting fraud, but since clear errors were confirmed in the settlement documents, we will request restatement in July following the usual procedures."

This content was produced with the assistance of AI translation services.