The Financial Services Commission (FSC) decided to impose a total penalty surcharge of 6.26 billion won on SK ecoplant over suspected violations of accounting standards.
The FSC said on the 22nd that it held its 18th meeting and resolved to impose a penalty surcharge of 5.41 billion won on the company for violations of accounting standards by SK ecoplant. It also imposed 420 million won on the former CEO, 30 million won and 20 million won on two current CEOs, respectively, and 380 million won on the responsible executive.
Along with the penalty surcharge, SK ecoplant was also ordered to have an auditor designated for two years, to recommend dismissal of the responsible executive, and to suspend duties for six months.
For the auditor Samjeong Accounting Corp., an additional 20% contribution to the joint compensation fund and a two-year restriction on audit work for SK ecoplant were imposed.
SK ecoplant is suspected of overstating the sales of its U.S. fuel cell subsidiary, Company A, during the initial public offering (IPO) process. The Financial Supervisory Service (FSS) viewed that the consolidation financial statements were prepared and disclosed falsely and that there was an incentive to boost the corporations' value. It therefore determined that accounting standards were intentionally violated. The Securities and Futures Commission under the FSC concluded on the 10th of last month that SK ecoplant's accounting treatment amounted to "gross negligence," a step below intent.