FSC reveals false accounting of Daewoo Group

Former chairman of Daewoo Group, Kim Woo-Choong, former and exiting management and employees are likely to be indicted or investigated for the false accounting. Moreover, 40 accountants who intentionally slipped by their false accounting will be indicted or investigated by the prosecutor¡¯s office.

Sandong accounting firm, which is responsible for the false accounting, will be suspended of business. 4 of their accountants will be stripped of their license and 10 will be suspended. Angun and Anjin accounting firms will be prohibited from performing audits for a year.

The Financial Supervisory Commission revealed that the amount of false accounting for 12 affiliates of Daewoo Group total 2.3 trillion won. Securities and Futures Commission (SFC) on September 1 could not decide on the level of penalty to be imposed on Daewoo. The committee plans to convene next week to make the decision.

The committee, which is under the direct control of the financial supervisory of commission on this day, held a temporary meeting to discuss review results of the false accounting from the review committee, but could not come to an agreement on the level of penalty to be imposed.

Choi Young-Hae moneychoi@donga.com