The Financial Services Commission held its 16th meeting on 17th and resolved to impose measures including a penalty surcharge on STX, STX Marine Service, and company officials for preparing and disclosing financial statements in violation of accounting standards.
Earlier, the Securities and Futures Commission determined that although a foreign lawsuit had been filed against a subsidiary of STX, the company neither recognized a provision in its financial statements nor disclosed a contingent liability in the notes, and that it impeded a proper audit by excluding the fact of the subsidiary's being sued from the litigation details provided to the external auditor.
The Financial Services Commission issued measures against STX including a 2.01 billion won penalty surcharge, three years of designated auditors, a recommendation to dismiss the CEO and a six-month suspension from duties. It also imposed a 200 million won penalty surcharge on the CEO. The commission also notified prosecutors of the company and the CEO.
The Financial Services Commission also took actions against STX Marine Service, including a 1.21 billion won penalty surcharge, designated auditors, recommendations to dismiss the former CEO and the current CEO, and a complaint to prosecutors. It also imposed a 120 million won penalty surcharge on each of the former and current CEOs.