Securities and Futures Commission Resolves to Designate Auditor for Two Years for Ihwa Electric Over Accounting Violations

Ihwa Electric Co., Ltd. violated accounting standards and has been subject to disciplinary measures from the financial authorities, including the designation of an auditor for two years.

Kwon Daeyoung, Chairman of the Securities and Futures Commission (Vice Chairman of the Financial Services Commission), is speaking at the regular meeting held on August 27, 2025, at the Government Complex Seoul in Jongno-gu, Seoul. Photo by Jo Yongjun

The Securities and Futures Commission of the Financial Services Commission resolved this at its regular meeting on March 11, 2026, following an investigation and supervisory review of Ihwa Electric Co., Ltd. The former executive in charge received a measure equivalent to a recommendation for dismissal.

According to the Securities and Futures Commission, Ihwa Electric Co., Ltd. issued bonds with warrants worth 52 billion won between 2021 and 2022, using the company's financial assets as collateral but failed to disclose this in the notes to its financial statements.

It was also found that the company conducted only a perfunctory review of contingent matters, resulting in significant weaknesses in its internal accounting management system.

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