[Alpha Biz= Reporter Kim Sangjin] The Securities and Futures Commission, under the Financial Services Commission, postponed its disciplinary decision on Kakao Mobility's alleged fraudulent accounting practices.

With sharp differences in opinions among commission members, the decision-making process appears to be prolonged.

According to financial authorities on the 5th, the Securities and Futures Commission held a regular meeting in the afternoon to discuss Kakao Mobility's fraudulent accounting issue and the level of disciplinary action to be taken.

Reportedly, opinions among commission members sharply differed regarding Kakao Mobility's intent, even in previous meetings such as the audit committee. A financial authority stated the day before, "There is a possibility that there won't be a conclusion on Kakao Mobility's case on the 5th either. We need to discuss it because opinions vary."

The Financial Supervisory Service previously determined that Kakao Mobility inflated its franchise taxi business revenue from 2020, leading to an audit. Kakao Mobility adopted the total amount method, considering commissions as revenue and royalty returned to operators as expenses. However, the Financial Supervisory Service pointed out that according to the net amount method, only the difference between commissions and royalties, about 3-4%, should be considered as revenue. The Financial Supervisory Service recommended imposing fines for violating external audit regulations and suggested dismissing Kakao Mobility CEO Ryu Gung-seon.

Kakao Mobility changed its accounting method from the total amount method to the net amount method in response to the Financial Supervisory Service's sanctions. Kakao Mobility announced in the notice of the annual shareholders' meeting in March that it recorded operating revenue of 601.4 billion won last year. It was reported that operating revenue would exceed 1 trillion won if the previous accounting method were applied. Despite the Financial Supervisory Service's recommendation for dismissal, Kakao Mobility re-elected CEO Ryu at the regular shareholders' meeting in March.

On the previous day, Kim Bo-hyun, the head of the Financial Supervisory Service, emphasized the importance of respecting the decision of the Securities and Futures Commission regarding Kakao Mobility's case.

 

 

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