Kyobo Life Put Option Dispute... Samdeok Accounting Firm Prosecuted Following Anjin

Prosecutors Indict All Accounting Firms Related to Put Option Case

▲Shin Chang-jae, Chairman of Kyobo Life Insurance

[Asia Economy Reporter Oh Hyung-gil] Prosecutors have indicted an accountant from Samduck Accounting Corporation on charges of violating the Certified Public Accountant Act amid a dispute over the 'put option (stock purchase right)' between Shin Chang-jae, chairman of Kyobo Life Insurance, and the financial investor (FI) Affinity Consortium.

With the indictment of all accounting firms involved in the put option, including Deloitte Anjin Accounting Corporation, the put option dispute has entered a new phase.

According to the insurance industry and legal circles on the 26th, prosecutors indicted an accountant from Samduck Accounting Corporation on the 25th. Samduck Accounting Corporation is reportedly accused of violating the Certified Public Accountant Act by submitting false reports while conducting corporate valuation work related to Affirma Capital, a financial investor of Kyobo Life Insurance, exercising the put option against Chairman Shin.

Affirma Capital requested a valuation from Samduck Accounting Corporation on November 14, 2018, immediately after the Affinity Consortium exercised the put option against Chairman Shin.

It is judged that the accountant from Samduck Accounting Corporation falsely reported as if they had directly performed the corporate valuation work for Kyobo Life Insurance, despite not actually doing so.

It is also known that prosecutors detected circumstances indicating that the accountant plagiarized the valuation method and valuation amount from Deloitte Anjin Accounting Corporation's report, which was prepared around the same time, and fabricated the appearance of having directly performed the valuation work.

Earlier, prosecutors had non-detained indicted key executives of the Affinity Consortium, composed of Affinity Equity Partners, IMM PE, Baring PE, and the Singapore Investment Corporation, as well as accountants from Deloitte Anjin Accounting Corporation, on charges of receiving illicit solicitations, accepting bribes, promising benefits equivalent to legal fees, and participating in obtaining unfair monetary gains.

Kyobo Life Insurance stated, "Affinity Consortium and Affirma Capital simultaneously exercised put options against the largest single shareholder based on falsely prepared reports through illegal acts," adding, "The reliability and appropriateness of the valuation reports have also been severely damaged."

Meanwhile, the second preparatory hearing for the trial of key executives of the Affinity Consortium and accountants from Deloitte Anjin Accounting Corporation is scheduled for the 2nd of next month.

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