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Photo = Financial Supervisory Service |
[Alpha Biz= Kim Jisun] The Financial Supervisory Service (FSS) has begun an accounting review of Korea Investment & Securities after the company overstated its operating revenue (sales) in its business reports over the past five years.
In a briefing on April 1, Ham Yong-il, the Deputy Director of the FSS Capital Markets Division, stated, “We have initiated an accounting review of Korea Investment & Securities. We will examine the scale of the revenue misstatement, its percentage, and whether there was any intentional wrongdoing. If we find any significant issues, we will transition to a more intensive inspection."
If the accounting review determines that there was gross negligence or intent, the case could escalate to an investigation.
Korea Investment & Securities recently corrected its business reports for the years 2019 to 2023, released on March 21. The company revealed that internal accounting errors had led to a reduction of approximately 570 billion KRW in its operating revenue compared to the previously disclosed figures.
Korea Investment & Securities maintains that the error was a simple mistake and asserts that, since both revenue and expenses increased by the same amount, there was no impact on the company’s net income.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
