The Financial Services Commission's Securities and Futures Committee (SFC) filed a criminal complaint with law enforcement authorities against KOSDAQ-listed Fidelix, which violated accounting treatment standards.
The SFC announced on the 28th that at its 19th meeting, it had filed a criminal complaint with law enforcement authorities against Fidelix and former representatives who prepared and disclosed financial statements in violation of accounting treatment standards. The responsible executive was notified to law enforcement authorities. In addition, decisions were made regarding administrative fines, designation of an auditor for three years, and recommendations for the dismissal (removal) of the former representative and others. The amount of the administrative fine will be finally determined at a subsequent Financial Services Commission meeting.
According to the SFC, Fidelix, a manufacturer of integrated circuits, was found to have colluded with business partners to record fictitious sales in order to make its operating performance, such as revenue, appear favorable for the purpose of raising external funds from 2018 to 2022. It also obstructed the normal external audit by the auditor.
Separately, measures including restrictions on audit work were imposed on Hyundai Accounting Firm, which violated audit procedures in its audit of Company A, and With Accounting Firm, which violated regulations restricting consecutive audit work by the same partner.
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