'False Financial Statement Disclosure' Former CEO of Aseuteu Fined 1 Billion Won

[Financial News] The Securities and Futures Commission under the Financial Services Commission held its first extraordinary meeting on the 11th and decided to impose a fine of 2.24 billion won on Aseuteu for violating accounting standards and falsely preparing and disclosing financial statements.
According to the Securities and Futures Commission, the former management of Aseuteu was aware of the overstatement of inventory assets but ignored it and did not correct the financial statements. Instead, they obstructed external audits by auditors by systematically ordering the submission of false inventory asset records to conceal this fact.
The Securities and Futures Commission determined that the former management knowingly concealed the false financial statement disclosure violation for a long time, exacerbating investor damage, and imposed a personal fine of 1.02 billion won on the former CEO, the highest amount ever.
However, the Securities and Futures Commission decided that 'listing management measures are unnecessary' considering that the major shareholders and management of Aseuteu have been completely replaced, and the new major shareholders and management have corrected and disclosed the financial statement errors. Listing management measures unnecessary means that even if there is a prosecution or notification by the Securities and Futures Commission, the company is exempt from trading suspension and listing eligibility review. This was first applied since its introduction in June last year.
Separately, the Securities and Futures Commission also decided to impose a fine of 1.48 billion won on Soop (formerly AfricaTV) for inflating sales by recognizing game content advertising revenue as 'gross (recognizing revenue and related costs separately)' instead of 'net (recognizing revenue after offsetting related costs)'.


elikim@fnnews.com Kim Mi-hee Reporter