The South Korea Financial Services Commission imposed fines totaling KRW 10.149 billion on Kumyang, Ascendio, nine current and former company officials, and two accounting firms for financial reporting and audit failures. Kumyang received a KRW 7.633 billion fine, while six officials were fined KRW 1.522 billion in aggregate. Ascendio and three former officials were fined KRW 733.7 million and KRW 157.9 million, respectively. Taeyul Accounting Corporation and Sunjin Accounting Corporation received fines of KRW 80 million and KRW 22.5 million. Kumyang fabricated KRW 10.3 billion of sales and cost of sales in 2022, incorrectly consolidated a jointly controlled Mongolian entity and failed to recognize impairment losses. It also obstructed its external audit by presenting false transaction evidence and staging inventory, then submitted false materials and statements during the regulatory review. Ascendio failed to recognize a KRW 29.488 billion impairment loss on a subsidiary investment in 2019, while Taeyul did not adequately address the misstatement in its audit. Sunjin performed materially deficient audit procedures for revenue and cost of sales. The Securities and Futures Commission had previously approved related measures, including three-year auditor designations for Kumyang and Ascendio, executive dismissal and suspension recommendations, criminal complaints and referrals, additional compensation fund contributions by the accounting firms, and restrictions on specified audit engagements.

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