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Keumyang Faces Regulatory Sanctions for Accounting Violations
Process Industries · Chemicals: Major Diversified · yonhap_finance · 2026-09-02
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Financial regulators have imposed fines and mandated external auditor appointments on Keumyang following findings of fraudulent accounting and inflated revenue.
What Happened
Regulatory Action: The Securities and Futures Commission has imposed a three-year mandatory auditor appointment and financial penalties on Keumyang. The decision follows an investigation that uncovered significant violations of accounting standards in the company's financial reporting.
Nature of Violations: The investigation revealed that Keumyang recognized fictitious revenue through fake tax invoices without actual asset transfers. Furthermore, the company was found to have overstated its equity through improper consolidation of a Mongolian subsidiary and obstructed the external audit process.
Personnel and Auditor Penalties: The commission recommended the dismissal and suspension of the CEO and other executives involved in the misconduct. Additionally, the accounting firm responsible for the audit, Seonjin Accounting Corp, was sanctioned with requirements to increase its joint liability fund.
Company Response: Keumyang has expressed strong disagreement with the ruling, labeling the regulators' actions as excessive and unfair. The company announced its intention to file an administrative lawsuit to challenge the decision and defend its interests.