Financial Services Commission Restricts Redrover's Securities Issuance for 6 Months Due to Accounting Violations
[Asia Economy Reporter Lee Seon-ae] The Securities and Futures Commission under the Financial Services Commission has decided on sanctions such as restrictions on securities issuance against Redrover for violating accounting standards.
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According to the Securities and Futures Commission, Redrover inflated its equity capital by misclassifying and incorrectly accounting for gains and losses on financial products during 2018-2019. On the 20th, the Commission imposed a six-month restriction on securities issuance, fines, a two-year auditor designation, and recommended the dismissal of two former executives responsible. For Jeongil Accounting Firm, which audited in 2018, the Commission ordered fines, an additional 50% contribution to the joint compensation fund, and a three-year restriction on auditing Redrover. For Jeongmyeong Accounting Firm, the 2019 auditor, fines, an additional 30% contribution to the joint compensation fund, and a two-year restriction on auditing Redrover were imposed. The final decision on fines against auditors and company officials will be made by the Financial Services Commission in the future.
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