South Korea’s Financial Services Commission approved fines of KRW 937.8 million against Haitai Confectionery & Foods and a combined KRW 362.1 million against four company officials for preparing and disclosing financial statements that violated accounting standards. The officials comprise the chief executive, a former statutory auditor, the head of finance and a former sales executive. The company overstated revenue and cost of sales in its consolidated and separate financial statements for 2016–2019 by issuing false tax invoices and failing to account for sales discounts and incentives. It also used financial statements that breached accounting standards in securities registration statements. The company obstructed external audits by providing false transaction evidence and asking counterparties to submit false responses to receivables confirmation requests. The fines follow separate sanctions approved by the Securities and Futures Commission on Sept. 16, 2026. Those measures included requiring a designated auditor for three years, recommending the finance head’s dismissal and suspending that official’s duties for six months. The finance head and former statutory auditor were also referred to investigative authorities.
South Korea’s Financial Services Commission fines Haitai Confectionery & Foods and four officials for accounting violations
South Korea’s Financial Services Commission approved a KRW 937.8 million fine against Haitai Confectionery & Foods and combined fines of KRW 362.1 million against four officials for accounting violations. The findings included overstated revenue and cost of sales during 2016–2019, the use of noncompliant financial statements in securities filings and obstruction of external audits. The penalties follow sanctions approved in September, including a designated auditor requirement and referrals to investigative authorities.