The Financial Services Commission noted on the 25th that it decided to impose penalty surcharges on the real estate developer Raon Holdings and its officials, as well as the auditor for violating accounting standards when preparing and disclosing financial statements.
According to the Financial Services Commission, Raon Holdings overstated its revenue, expense, and equity by including capitalized financial costs that should have been excluded when calculating the construction progress rate from 2021 to 2023.
The Financial Services Commission voted to impose a penalty surcharge of 99.9 million won on the company and a total of 19.8 million won on two officials, including the CEO. It also decided to impose a penalty surcharge of 5 million won on the external audit firm Shinbo Certified Public Accountants for neglecting audit procedures during the audit process.
A penalty surcharge of 6.6 million won was imposed on Songrim Certified Public Accountants, which was found to have violated important audit procedures through the auditor's inspection.