South Korea's Financial Services Commission published final enforcement decisions imposing penalties totaling KRW 1.2534 billion on two companies, former company officers and two audit firms. The measures address financial statements prepared in breach of accounting standards and auditors’ failures to perform adequate procedures and reflect the misstatements in their opinions. Manho Steel Co. was fined KRW 616.1 million for prematurely recognizing revenue from 2019 through 2022, while two former officers were fined a combined KRW 123.2 million. Shinhan Accounting Corporation received a KRW 114 million penalty for inadequate audit procedures and breaching an audit director rotation requirement. Uiwang Baegun Project Finance Investment Co. was fined KRW 380.3 million for understating inventory and liabilities and misstating cost of sales and inventory from 2019 through 2023. Its auditor, Daejoo Accounting Corporation, was fined KRW 19.8 million for insufficient audit work. Separate nonmonetary sanctions previously approved by the Securities and Futures Commission on June 24 and July 8 included designated auditors for the companies, restrictions on the audit firms and individual certified public accountants, additional contributions to damages compensation funds, professional training and a dismissal recommendation for a former Manho executive.
South Korea Financial Services Commission2026-07-31
South Korea's Financial Services Commission imposes KRW 1.253 billion in penalties for accounting and audit failures
South Korea's Financial Services Commission imposed KRW 1.2534 billion in penalties on two companies, former officers and audit firms for accounting violations and inadequate audit procedures. Separate sanctions include designated auditors, audit engagement restrictions and additional contributions to damages compensation funds.