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Photo = FSS |
[Alpha Biz= Reporter Kim Sangjin] The Financial Supervisory Service (FSS) has commenced an accounting review of Korea Zinc and Youngpoong, both of which are embroiled in a management dispute. Should any violations be discovered, this could lead to a regulatory investigation and significant sanctions against the companies.
On October 15, financial authorities announced that the FSS officially notified Korea Zinc and Youngpoong about the initiation of the accounting review.
The review will involve verifying the disclosed information, requesting additional data, and seeking clarifications, typically taking three to four months. If accounting violations are identified during this process, it could escalate to a regulatory investigation, which would include reviewing audit reports from accounting firms.
The FSS plans to examine allegations raised in the market, particularly concerning provisions for liabilities and impairment of investment securities. An FSS official stated, "We will assess whether the financial statements were prepared in accordance with accounting standards and investigate any inaccuracies in areas of concern." He added, "Both parties have accused each other of wrongdoing, so we will look into those claims."
If the accounting review confirms any allegations, the companies may face direct sanctions, resulting in significant repercussions for their operations.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
