The South Korea Financial Services Commission published enforcement decisions by the Securities and Futures Commission against Kumyang Co., Ltd. for accounting violations and Sunjin Accounting Corporation for deficient audit procedures. Kumyang falsely recognized KRW 10.3 billion in revenue and related items, incorrectly consolidated a jointly controlled Mongolian entity, and failed to recognize investment impairment losses. The company also obstructed its external audit and submitted false materials during the regulatory review. Kumyang will be assigned an auditor for three years, face corrective measures and receive recommendations covering the dismissal and six-month suspension of senior executives. The company and several current and former executives were also referred to prosecutors. Sunjin Accounting must make an additional contribution equal to 20% of the required joint compensation fund and is barred from auditing the relevant client for two years, while two certified public accountants face audit restrictions and mandatory training. Financial penalties against Kumyang, related individuals and Sunjin Accounting remain subject to a final decision by the Financial Services Commission.
2026-09-02South Korea Financial Services Commission
South Korea Financial Services Commission announces sanctions against Kumyang and Sunjin Accounting for reporting and audit failures
The South Korea Financial Services Commission announced sanctions against Kumyang for accounting violations, audit obstruction and false submissions, including three years of auditor designation and prosecutor referrals. Sunjin Accounting faces a 20% additional compensation fund contribution and a two-year restriction on auditing the relevant client for deficient audit procedures. Financial penalties remain subject to a final decision.