The Securities and Futures Commission under South Korea’s Financial Services Commission imposed measures on Haitai Confectionery & Foods for misstating its 2016-2019 financial statements, using noncompliant financial statements in securities registration statements and obstructing an external audit. The company will be subject to a designated auditor for three years, while financial penalties for the company and related individuals remain subject to a final decision by the Financial Services Commission. The company overstated revenue and cost of sales by KRW 13.678 billion in 2016, KRW 15.317 billion in 2017, KRW 11.256 billion in 2018 and KRW 12.777 billion in 2019. The misconduct involved issuing false tax invoices and omitting sales discounts and incentives from its accounting. Haitai also provided false transaction evidence to its auditor and asked counterparties to submit false responses to receivables confirmation requests. The commission recommended dismissal and imposed a six-month suspension on the head of finance, issued the equivalent of a dismissal recommendation against a former statutory auditor, and notified prosecutors about both individuals.
2026-09-17South Korea Financial Services Commission
South Korea’s Securities and Futures Commission imposes three-year auditor designation on Haitai Confectionery & Foods over accounting violations
South Korea’s Securities and Futures Commission imposed a three-year designated-auditor requirement on Haitai Confectionery & Foods for financial misstatements from 2016 to 2019 and obstruction of an external audit. The measures also include personnel sanctions and notifications to prosecutors, while financial penalties await a final Financial Services Commission decision.