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Haitai Confectionery Faces Regulatory Sanctions Over Accounting Irregularities
Consumer Non-Durables · Food: Specialty/Candy · yonhap_finance · 2026-09-16
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The Securities and Futures Commission has imposed a three-year auditor designation and fines on Haitai Confectionery for accounting violations and audit obstruction.
What Happened
Violation Details: Haitai Confectionery was found to have inflated its revenue and cost of goods sold by issuing fake tax invoices and omitting sales discounts. The company also utilized non-compliant financial statements in securities registration filings and actively obstructed external audits.
Regulatory Sanctions: The Securities and Futures Commission (SFC) has ordered a three-year auditor designation for the company. Additional penalties include recommendations for the dismissal of the finance department head and the former auditor, along with the imposition of financial penalties.
Legal Consequences: The regulatory body has decided to refer the involved finance department head and the former auditor to the prosecution for further investigation. This move signals a strict stance against corporate accounting fraud and audit interference.
Next Steps: The final amount of the fines will be determined in a subsequent meeting held by the Financial Services Commission. The company now faces significant pressure to improve its internal control systems and restore financial transparency.