Korea’s securities regulators to charge SFC, New Pride with accounting fraud

2020.03.12 14:01:19

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Shares of SFC Co., a photovoltaic panel film maker, and New Pride Corporation, an automotive parts supplier, in South Korea became suspended after financial authority decided to file charges of accounting fraud with prosecution.

The Securities & Futures Commission under Financial Services Commission at its regular meeting on Wednesday decided to press charges against SFC and New Pride for breaching accounting rules.

The operator of Kosdaq bourse, where the two companies are listed, on the day said it is suspending trading of the two stocks until further notice.

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SFC is accused for intentionally omitting some transaction records, involving the company’s former chief executive officer. The financial authority will bring a charge against the company and the former CEO, as well as advise the removal of current CEO and impose a fine of 355.1 million won ($296,700). Echon & Co., the company’s accounting auditor, will also be penalized.

New Pride Corporation is alleged to have falsified financial statement by missing out a note of 6 billion won worth loan. The Securities & Futures Commission will also press criminal charges against the company and three company executives, including former CEO, on top of fines.

By Pulse

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