South Korea's Financial Services Commission imposed final penalties totaling KRW 1.1136 billion on Dexter Studios and two former chief executives for preparing and disclosing financial statements that violated accounting standards. The company was fined KRW 946.3 million, while the former executives received penalties of KRW 72.7 million and KRW 94.6 million. Dexter Studios recognized fabricated revenue by manipulating project completion rates for canceled projects or contracts whose values had been falsely increased. It also omitted accounting for a derivative linked to its share price, understating financial liabilities, and obstructed its external audit by submitting manipulated closing records. The Securities and Futures Commission previously approved other measures, including three years of auditor designation, dismissal-equivalent recommendations, criminal complaints against the two former chief executives and a corrective order. Daejoo Accounting Corporation, the company's auditor for 2016 and 2017, was ordered to make an additional 20% contribution to its damages fund and barred from auditing Dexter Studios for two years after failing to perform adequate procedures related to overstated revenue.
2026-09-09South Korea Financial Services Commission
South Korea's Financial Services Commission fines Dexter Studios and former executives KRW 1.1136 billion for accounting violations
South Korea's Financial Services Commission fined Dexter Studios and two former chief executives a combined KRW 1.1136 billion for accounting violations, including fabricated revenue, understated financial liabilities and audit obstruction. Other previously approved measures include three years of auditor designation, criminal complaints against the former chief executives and sanctions against the company's former auditor.