[Alpha Biz= Paul Lee] At the 5th regular meeting on Wednesday, the Financial Services Commission (FSC) decided to impose a fine of 2.37 billion KRW on Etron, which had been delisted from the KOSDAQ market.
Etron was found to have violated accounting standards by incorrectly classifying investments in affiliated companies, leading to an overstatement of its net income, and misrepresented its financial statements.
The FSC imposed fines of 150 million KRW each on Etron’s former CEO and three other executives. Two former CEOs were also referred to the prosecution. Additionally, the auditors responsible for the company's financial reporting, Sejong Accounting Corporation and Donghyun Accounting Corporation, were fined 100 million KRW and 150 million KRW, respectively, for their failure to properly oversee the process.
The FSC also decided to impose fines on two other companies for similar violations: Wave Electronics, a KOSDAQ-listed company, and EcoVibe, an unlisted company. Wave Electronics was fined 1 billion KRW for overestimating its development costs, and its former CEO and one other executive were fined 180 million KRW.
EcoVibe was fined 440 million KRW for failing to account for borrowings and provision liabilities, and the company was referred to the prosecution. The former CEO, who was recommended for dismissal, was fined 44.9 million KRW and also referred to the prosecution.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
