The Securities and Futures Commission Files Criminal Complaints with Prosecutors Against Former CEO of UNECO and Company for 'Accounting Fraud'

[Asia Economy Reporter Lim Chun-han] The Securities and Futures Commission under the Financial Services Commission announced on the 21st that it has determined that the special purpose machinery manufacturer Yuneco violated accounting standards in disclosing its financial statements, and has resolved to file charges against the company and its former CEO with the prosecution.

On the same day, the Securities and Futures Commission imposed a three-year auditor designation on the company and resolved to impose fines and penalties. It also decided to notify the prosecution of the relevant facts regarding the allegations against the retired responsible executive.

The Commission judged that Yuneco, from 2014 to 2019, under former CEO Mr. A, a related party, did not record the amount deposited into the subsidiary’s account as a loan but falsely represented it as accounts receivable collection, thereby underreporting the allowance for doubtful accounts by a total of 4.142 billion KRW.

The Commission also pointed out that Yuneco used financial statements containing violations of accounting standards in the securities registration statement and small-scale public offering disclosure documents it submitted.

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