[Edaily Reporter Kwon Oh Seok ] The Securities and Futures Commission (SFC) of the Financial Services Commission announced on the 24th that it held a regular meeting and resolved to take measures, including the appointment of auditors, against three companies— Ascendio(012170), Myeongga Dairy, and Uiwang Baekun Project Finance Investment—for preparing and disclosing financial statements in violation of accounting standards. In addition, the SFC imposed sanctions, such as restrictions on auditing activities, on the accounting firms and certified public accountants who neglected procedures during the audits of these companies.

According to the Securities and Futures Commission, it was revealed that Ascendio failed to conduct a sufficient review and did not reflect an impairment loss on its investment in a subsidiary in 2019, despite signs of impairment. Consequently, the Commission imposed measures on Ascendio, including the designation of an auditor for three years and a recommendation to dismiss the former CFO.
Tae-Yul Accounting Firm, which conducted Ascendio’s external audit, was also found responsible for failing to properly carry out audit procedures. As a result, the firm was subject to a three-year restriction on audit work and an additional 50% contribution to the joint compensation fund. The certified public accountants affiliated with the firm were also barred from auditing Ascendio for four years and from auditing listed companies for one year.
In the case of Myeongga Dairy, it was confirmed that the company had falsely or excessively recorded sales and purchases from 2017 to 2024 by treating intercompany fund transfers as sales and purchases. In response, the Securities and Futures Commission decided to designate a new auditor for three years and recommended the dismissal of the CEO and all executives responsible for the matter. The audit teams that audited Myeongga Dairy—the Sonang Certified Public Accountants Audit Team, Jeongmyeong Accounting Firm, and Hyundo Certified Public Accountants Audit Team—along with five affiliated certified public accountants, also received sanctions, including restrictions on audit work.
An investigation found that Uiwang Baegun Project Finance Investment violated accounting standards from 2019 to 2023 by understating inventory assets and liabilities and improperly reflecting cost of sales. The Korea Securities and Futures Commission (KSFC) imposed a one-year designation of an auditor on the company. Additionally, it imposed a two-year restriction on audit work for the company on the auditor, Daeju Accounting Firm, and required it to make an additional 20% contribution to the Joint Compensation Fund.