On the 14th, the aircraft fuselage structure manufacturer ASTK disclosed the deliberation results from the Securities and Futures Commission under the Financial Services Commission regarding violations of past accounting standards on the 11th.
The Securities and Futures Commission decided on measures for ASTK, including a restriction on the company's securities issuance until December and designation of an auditor for three years.
However, considering the complete replacement of the previous executives and the injection of new funds by the major shareholder, it was decided that listing management measures were unnecessary. As a result, the company and former executives were exempted from trading suspension and substantive listing examination following the prosecution complaint.
The decision that listing management measures were unnecessary was first introduced in June of last year and was applied for the first time this time, exempting the company from trading suspension and substantive listing examination, even with the prosecution complaint or notice from the Securities and Futures Commission.
Last year, under the new major shareholder Alpha Aero, ASTK discovered an error in inventory assets during the management diagnosis process and voluntarily corrected its financial statements.
Previously, the former executives of ASTK overestimated their equity capital and net income by accounting for sold inventory assets that should have been expensed from 2017 to 2022 as still being held in inventories.
In response, the Financial Supervisory Service initiated an accounting inspection and the Securities and Futures Commission reported that the former executives concealed violations of false disclosures in financial statements for a long time, exacerbating investor damage, and imposed penalty surcharges on the former CEO (1.02 billion won), former responsible executives (360 million won), former auditor (120 million won), former officer in charge of disclosure (720 million won), and strategic planning officer (20 million won).
An ASTK official noted, "We respect the decision of the financial authorities and are making every effort to ensure that violations of accounting treatment standards do not recur by completing the introduction of global Enterprise Resource Planning (ERP) and strengthening internal control activities. We will do our best to focus on business in our original position to enhance shareholder value."