The Financial Services Commission imposed a total penalty surcharge of 1.1136 billion won on Dexter Studios and company officials for violating accounting standards.
The Financial Services Commission said on the 9th that at its 15th meeting it decided to impose a penalty surcharge on Dexter Studios and company officials, who prepared and disclosed financial statements in violation of accounting standards, under the Act on External Audit of Stock Companies, etc.
The Financial Services Commission (FSC) imposed a penalty surcharge of 946.3 million won on the company and 167.3 million won on two people, including the former CEO. It also imposed executive sanctions equivalent to a dismissal recommendation on two people, including the former CEO, and filed a complaint with prosecutors.
Dexter Studios is accused of inflating revenue by manipulating the percentage of completion for projects whose production fell through or whose contract amounts were falsely increased. It is also accused of overstating net income and equity by omitting derivative accounting for products whose promised payouts to investors fluctuate based on the company's stock price as the underlying asset.
It also turned out that the company obstructed a normal external audit by manipulating key settlement of account materials and submitting them to the auditor.
As for Daiju Accounting Corporation, which audited Dexter Studios, it decided to set aside an additional 20% in the joint compensation fund for negligence in audit procedures and to restrict audit work on Dexter Studios for two years.