The Technology Co. Fined, Prosecuted for 4.5B Won Fictitious Sales
The Securities and Futures Commission (SFC) found that 더테크놀로지 (The Technology Co.) recorded fictitious product sales and cost of sales of 2,374 million won and 2,165 million won in FY2021 and FY2022, respectively.
The company also used non-compliant financial statements in small public offering documents and obstructed the external audit by withholding evidence of fictitious transactions.
The SFC imposed a fine of 289.8 million won, auditor designation for 3 years, recommended dismissal of the former responsible executive, referred the company, former CEO, and former executive to prosecution, a penalty of 48 million won, and corrective measures.
This enforcement is expected to severely impact the company's financial transparency and credibility.
KOSDAQ Filing Information
Filing: Prosecution Referral by the Securities and Futures Commission for Violation of Accounting Standards, etc.