The Securities Delisting Committee Imposes Securities Issuance Restrictions on G.L. Industrial Development for 'Accounting Violations'

[Asia Economy Reporter Minji Lee] The Securities and Futures Commission (SFC) under the Financial Services Commission announced on the 28th, during its 19th meeting, that it has decided to impose a two-month restriction on securities issuance and a one-year auditor designation on G.L. Industrial Development for preparing and disclosing financial statements in violation of accounting standards.

The Korean Institute of Certified Public Accountants took measures regarding the auditor who violated auditing standards while auditing the company's financial statements. Accordingly, Samyoung Accounting Firm was required to additionally reserve 20% of the joint compensation fund and was restricted from auditing the company for two years. The responsible certified public accountant was restricted from auditing listed and designated companies for one year and required to complete six hours of job training.

Meanwhile, the SFC took actions against 49 listed companies that violated the obligation to submit financial statements before the audit for the 2018 fiscal year, including auditor designation (12 companies), warnings (21 companies), and cautions (16 companies). For 75 unlisted companies, the commission decided on auditor designation (two years for one company, one year for three companies), warnings (24 companies), and cautions (47 companies).

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