The Securities and Futures Commission under the Financial Services Commission said it held its fifth meeting on the 11th and voted to designate an auditor and recommend dismissal of executives for Ehwa Technologies Information for violating accounting standards in the preparation and disclosure of its financial statements.
The Securities and Futures Commission (SFC) said Ehwa Technologies Information, when issuing bonds with warrants, provided 52 billion won worth of the company's financial assets (other companies' privately placed bonds) as collateral but failed to record this in the notes to the financial statements.
It also found significant weaknesses in the internal accounting control system, including conducting only perfunctory reviews of contingent matters.
Accordingly, the Securities and Futures Commission (SFC) designated an auditor for two years and took measures equivalent to recommending the dismissal of the former responsible executive.