The Financial Services Commission has imposed a total of 28.9 billion won (approximately $21.5 million) in fines on Youngpoong and Korea Zinc for violating accounting standards. This decision concludes the regulatory process that began last month with the designation of auditors and recommendations for the dismissal of executives.
During its 13th regular meeting on July 15, the Financial Services Commission announced the fines against Youngpoong, Korea Zinc, Hankyul LS, Myungga Dairy, and related company officials and external auditors for violations in preparing and disclosing financial statements.
The fines for each company are as follows: Youngpoong received the largest fine of 20.47 billion won, followed by Korea Zinc at 8.43 billion won, Myungga Dairy at 319 million won, and Hankyul LS at 208 million won.
Fines were also levied against company officials. Four former executives of Youngpoong were fined a total of 1.51 billion won, while two executives from Korea Zinc were fined 763 million won. Two former executives from Hankyul LS received fines totaling 41.6 million won, and two executives from Myungga Dairy were fined 31.9 million won.
Sanctions were also confirmed for auditors. Daewoo Accounting Corporation, which audited Youngpoong, was fined 1.068 billion won. The auditors for Myungga Dairy, Jeongmyeong Accounting Corporation, and the Hyun-do and Sonang Accounting Firms were fined 3.6 million won, 10.2 million won, and 2.7 million won, respectively.
Investigations revealed that Youngpoong had significantly underreported provisions related to soil and groundwater purification obligations and failed to properly reflect impairment losses on its smelting plant's tangible assets. Korea Zinc was found to have inadequately recognized investment asset impairment losses and goodwill impairment from subsidiaries, omitted disclosures on related party transactions, and obstructed external audits.
Hankyul LS was found to have manipulated inventory records, falsely inflating inventory assets and minimizing inventory asset impairment losses. Myungga Dairy was also included in the sanctions for violations of accounting standards.
Previously, the Securities and Futures Commission had approved administrative actions against Youngpoong, Korea Zinc, and Hankyul LS on June 10, including auditor designation, recommendations for executive dismissals, and corrective measures. Sanctions against Myungga Dairy were finalized on June 24.
* This article has been translated by AI.
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