The Securities and Futures Commission imposes fines on four companies including Seegene for inflating sales

[Asia Economy Reporter Ji Yeon-jin] The Securities and Futures Commission announced on the 8th that at a regular meeting, it took measures such as imposing fines on the KOSDAQ-listed company Seegene for violating accounting standards.

According to the Securities and Futures Commission, Seegene, a medical device manufacturer, was found to have arbitrarily shipped excessive quantities of products exceeding actual order volumes to dealerships from 2011 to 2019 and recognized all of these as sales, resulting in overstated or understated sales revenue, cost of sales, and related assets.

The Securities and Futures Commission decided to impose fines on Seegene (final approval by the Financial Services Commission), designate auditors for three years, recommend dismissal of responsible executives and suspension of duties for six months, and recommend improvements to internal controls.

Seegene is a leading South Korean company specializing in diagnostic kits for the novel coronavirus disease (COVID-19). As of the closing price on the day, Seegene’s market capitalization was KRW 4.7247 trillion, ranking 5th on the KOSDAQ.

Esmark, an unlisted corporation (subject to business report submission), was investigated for falsely stating the purpose of fund usage in its securities registration statement, misappropriating funds from a paid-in capital increase, and falsely recording available-for-sale securities to conceal this.

The Securities and Futures Commission decided to refer Esmark to the prosecution. It also imposed restrictions on securities issuance for one year, a fine of KRW 16 million (on the former CEO), a penalty of KRW 60 million, and designated auditors for three years.

Unlisted corporations Cosun Bio (formerly Hyunseong Vital) and A-Pool were found to have understated or overstated bad debt provisions on accounts receivable.

Cosun Bio received sanctions including a 10-month restriction on securities issuance, a penalty of KRW 36 million, and auditor designation for three years, while A-Pool received an 8-month restriction on securities issuance and auditor designation for two years.

The Securities and Futures Commission also decided to recommend suspension of duties and restrict audit work for accounting firms and certified public accountants affiliated with these companies who violated auditing standards while auditing their financial statements.

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