The Financial Supervisory Service began monitoring whether the financial statements of Osstem Implant, which was involved in the embezzlement case worth 188 billion won, were amended.
The Financial Supervisory Service announced today (the 5th) that it is monitoring the investigation status and whether the company’s financial statements have been revised.
After a meeting with the heads of research institutes held at the Federation of Banks today, FSS Commissioner Jeong Eun-bo met with reporters and said, “I think that various facts and legal aspects will be analyzed in the course of the investigation, and the FSS will closely monitor such a situation to discuss what needs to be done. We will do it when necessary,” he said.
FSS Commissioner Jeong continued, “As the investigation is ongoing, it is difficult for the Financial Supervisory Service to grasp the specific facts.”
In addition to monitoring, he added, “I will continue to do (what needs to be done) under the water” regarding this embezzlement case.
Regarding the theory of responsibility that the FSS did not recognize the unusual trend even following the suspect purchased a large number of stocks with the embezzled funds and made an announcement on the acquisition of the shares, the FSS Director Jeong avoided an immediate answer, saying, “I will decide whether it was possible to catch it while watching the investigation.” I did.
However, the FSS is of the opinion that it has not decided to review the cancellation of registration as a listed auditor of Induk Accounting Corporation, which was the designated audit firm of Osstem Implant, or to launch an investigation into allegations of false financial statements in the third quarter of last year.
Earlier on the 3rd, Osstem Implant announced that it had sued Lee, a money management employee, for business embezzlement (violation of the Act on the Aggravated Punishment of Specific Economic Crimes, etc.).
The estimated amount of embezzlement is KRW 188 billion, which is 91.81% of Osstem Implant’s equity capital of KRW 247 billion.
Osstem Implant said that it was aware of the incident on December 31 last year and submitted a complaint once morest the employee to the Gangseo Police Station in Seoul.
So far, it has been identified as a case of embezzlement carried out solely by the money management staff.
As the embezzlement incident occurred, it is known that banks with 300 billion won of Osstem Implant loans are considering re-rating the company’s credit rating.
Credit rating re-evaluation is carried out when the company’s circumstances have improved or deteriorated significantly, sometimes even when an event large enough to affect the stock price occurs.
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