The Financial Services Commission imposed a total of 1.6 billion won in penalty surcharges on Ehwa Technologies Information and related parties, including a former CEO, for violating accounting standards.
The Financial Services Commission (FSC) said it held a regular meeting on the 15th and approved these measures. Ehwa Technologies Information was hit with a 1,470.5 million won penalty surcharge, and three individuals—a former CEO, a responsible executive, and a full-time auditor—were each fined 34.6 million won.
For the company, a two-year designation of an external auditor was decided, and a measure equivalent to a recommendation for dismissal was also issued for the former responsible executive.
Ehwa Technologies Information, in the process of issuing bonds with warrants in 2021–2022, provided the company's financial assets as collateral but did not disclose this in the notes to the financial statements.
The Financial Services Commission (FSC) also judged that there were significant weaknesses in the internal control over financial reporting, citing involvement by key management in the disclosure of accounting information and merely perfunctory execution of internal control procedures such as reviews of contingencies.