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Regulator to inspect accounting irregularities by unethical corporate raiders

All News 12:01 December 05, 2018

SEOUL, Dec. 5 (Yonhap) -- The financial watchdog said Wednesday it will launch an inspection into accounting irregularities at listed firms that are suspected of having been acquired by unethical corporate raiders.

Some corporate raiders, who launch a takeover of a listed firm by using borrowed funds, have been accused of being involved in illegal accounting to hide a misuse of the firm's money after the takeover.

Financial Supervisory Service's headquarters in Yeouido, Seoul (Yonhap)

In a statement, the Financial Supervisory Service (FSS) said it will sternly deal with accounting irregularities at such companies.

The FSS also urged investors to be cautious about buying stocks of a company if little is known about the company's largest shareholder.

Some retail investors have been suffering because of their investment into stocks related to merger and acquisition activities by firms with little capital.

Such merger and acquisition activities are often targeted for speculative investment or stock manipulation,

kdh@yna.co.kr
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