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Financial regulator to tighten accounting rules

All Headlines 10:20 July 09, 2018

SEOUL, July 9 (Yonhap) – South Korea's financial watchdog said Monday it will tighten accounting rules on big companies and impose tougher penalties against corporate crimes.

Yoon Suk-heun, governor of the Financial Supervisory Service (FSS), made the remarks as he laid out plans to reform the regulatory watchdog.

Under the plans, the FSS will step up its monitoring of accounting practices in the nation's top 50 companies, Yoon told reporters.

The FSS will swiftly launch a probe into cases of stock price manipulation or unfair trading cases using short selling, Yoon said.

FSS Gov. Yoon Suk-heun (Yonhap)

Authorities have reviewed financial statements and required accounting firms to submit transparency reports as part of efforts to toughen rules on corporate accounting standards.

Compared with other advanced nations, South Korea still lags far behind in overall accounting standards.

To regain investor confidence, the government has drastically hiked fines assessed in cases of accounting irregularities.

Under the latest accounting reform measures, chief executives of a company or an accounting firm will face "stern punishment" if they are involved in irregularities, officials said.

kdh@yna.co.kr
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