TLI "Designated for Investment Warning... Will Strengthen Internal Accounting Control Activities"

[Asia Economy Reporter Hyunseok Yoo] TLI, a semiconductor design company specializing in displays, announced on the 22nd that it was designated as an investment caution item after receiving an adverse opinion on its internal accounting control system due to the revision of the previous year's financial statements following the recovery of previously impaired investments.

TLI had judged that 2 billion KRW out of approximately 5 billion KRW invested in debt instruments in 2008 would be difficult to recover and sequentially recognized losses in 2016 and 2018. In February, through the liquidation of the investee's assets, the principal of 2 billion KRW that had been impaired and dividend income of 1.5 billion KRW were realized.

Under the recently implemented designated audit system, the accounting firm assigned as the designated auditor since last year discovered the 2021 investment recovery issue and revised TLI's previous financial statements that had recognized impairment, issuing the 2020 audit report. The audit opinion was unqualified, but the internal accounting control system received an adverse opinion.

A company official stated, "Although we regret the accounting firm's decision, we will take this opportunity to strengthen internal accounting control activities and exercise greater caution in the future. The funds received will be used for the development of new products such as M.LED and OLED and for pioneering new markets."

The investment caution item designation is intended by the Korea Exchange to alert general investors to exercise caution in investing and will be lifted after one year.

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