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STX building. (Photo = STX) |
[Alpha Biz= Kim Jisun] The Securities and Futures Commission (SFC) under South Korea’s Financial Services Commission (FSC) held its regular meeting on July 2, during which it approved punitive measures against STX for violating accounting standards in the preparation and disclosure of its financial statements for 2022 and 2023.
According to the SFC, STX failed to recognize provisions or disclose contingent liabilities in relation to legal proceedings involving its subsidiaries. Furthermore, the company omitted key litigation details in the documentation submitted to external auditors, thereby obstructing the audit process.
As a result, the SFC resolved to impose multiple sanctions, including:
A three-year mandatory appointment of an external auditor
A recommendation to dismiss the CEO and suspend duties for six months
Referral to the prosecution for further investigation
Imposition of a fine, the amount of which will be determined by the Financial Services Commission at a later date.
The case underscores the Korean government's commitment to maintaining transparency and integrity in corporate financial reporting.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
