SETOPIA, a KOSDAQ-listed company, received a penalty surcharge of 270 million won and fines of 100 million won, along with a three-year designation of auditors, for overstating financial assets and liabilities of 8 billion won.
On Dec. 12, the Securities and Futures Commission under the Financial Services Commission held its fifth meeting and decided to impose a penalty surcharge of 270 million won and fines of 100 million won, along with a three-year designation of auditors, on SETOPIA for violating accounting standards in its financial statements. The company and three individuals, including the former CEO, were also referred to the prosecution.
SETOPIA, a steel manufacturing company, overstated financial assets and liabilities of about 8 billion won, as it treated the subscription fee for convertible bonds issued by its subsidiary in 2019 as paid, although it was not.
The Securities and Futures Commission also recommended the dismissal of the former executive in charge of SETOPIA and voted for corrective measures. The imposition of a penalty surcharge on company officials will be finalized by the Financial Services Commission in the future.