Financial Services Commission Imposes Fines on Companies Violating Accounting Standards... Yongpoong 204 Billion, Koryeoyan 84 Billion

The Financial Services Commission (FSC) approved penalties against companies violating accounting standards, imposing fines of 204 billion won on Yongpoong and 84 billion won on Koryeoyan. The FSC finalized the penalties during its 13th meeting on May 15. Yongpoong was fined 204.741 billion won, with its former CEO and three others receiving 15.115 billion won. Koryeoyan faced an 84.281 billion won fine, with its CEO and another executive receiving 7.632 billion won. The FSC cited Yongpoong's failure to recognize liabilities for soil contamination at its refinery site from 2021-2022 and inappropriate accounting for cleanup costs in 2023-2024. Previous penalties for environmental violations at Yongpoong's refinery and inadequate disclosure of liabilities for contaminated soil and groundwater were also highlighted. The FSC also recommended the removal of Yongpoong's former CEO. Koryeoyan was fined for understating losses from financial instrument impairments and failing to disclose impacts on overseas subsidiaries, while other companies like Hanjeol EL and Minggaya also received penalties.