Financial Services Commission Fines Ewha Electric Industrial 1.47 Billion Won for Accounting Violations

The Financial Services Commission announced on April 15 that, at its 7th meeting, it decided to impose a fine of 1,470,500,000 won on Ewha Electric Industrial for preparing and disclosing financial statements in violation of accounting standards.

Ewha Electric Industrial, an unlisted corporation, issued bonds with warrants and provided privately placed bonds of other companies—categorized as its own financial assets—as collateral, but failed to disclose this in the notes to its financial statements. It was also found that there were significant weaknesses in the internal accounting control system, such as key executives intervening in the process of disclosing accounting information.

The Financial Services Commission also decided to impose a total fine of 103,800,000 won on three company officials, including the CEO, in addition to the penalty against the corporation itself.

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