Artist Company: "Internal Control System Activated; Steps Underway to Resolve the Issue"

[Financial News] Artist Company immediately began activating its internal control system after allegations emerged that an unregistered executive had breached trust in the course of his duties.
 An Artist Company representative said on the 17th, "Allegations have been raised regarding suspected breach of trust in the course of duties by Mr. Lee, an unregistered executive," and added, "We will determine the specific details through an audit and external legal counsel regarding the facts and allegations, and confirm whether the company suffered losses and, if so, their scale." 
 Based on the results of its investigation through the internal control system, Artist Company plans to take any necessary legal action in accordance with proper procedures, including recovery measures such as filing claims for damages. It also plans to actively cooperate with investigations by relevant institutions if necessary.
 In particular, Artist Company plans to implement measures to improve its internal controls and prevent a recurrence. These measures include separating duties and introducing dual-approval procedures, improving internal control regulations and systems, strengthening internal audit functions, and conducting regular checks of funds and internal discipline.
 Earlier, Artist Company also recruited outside executives, including Kim Hyung-seok, CFO and former finance executive at KOSDAQ-listed companies such as ITCENENTEC and INSAN, to further strengthen its planning and management functions, including finance.
 Kim, the CFO, said, "The scale of the breach-of-trust allegations currently under review has not yet been determined, but we understand that their impact on the company's financial soundness and management stability is minor or limited." He added, "Nevertheless, the company regards building trust with the market and shareholders as its top priority and is carrying out immediate reporting and proper procedures in accordance with the strict disclosure obligations of a listed company." He emphasized, "Through this response process, we will demonstrate the effectiveness of our internal control system while further strengthening proactive, functional control measures that can fundamentally prevent risks." 
[email protected] Lee Joo-mi Reporter