{"id":2203659,"date":"2024-01-29T08:00:03","date_gmt":"2024-01-28T23:00:03","guid":{"rendered":"https:\/\/koreapro.org\/?p=2203659"},"modified":"2024-01-28T23:13:01","modified_gmt":"2024-01-28T14:13:01","slug":"south-koreas-financial-regulator-takes-aim-at-accounting-malpractice","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/01\/south-koreas-financial-regulator-takes-aim-at-accounting-malpractice\/","title":{"rendered":"South Korea\u2019s financial regulator takes aim at accounting malpractice"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">South Korea\u2019s Financial Supervisory Service (FSS) <\/span><a href=\"https:\/\/www.fss.or.kr\/fss\/bbs\/B0000188\/view.do?nttId=133446&amp;menuNo=200218\"><span style=\"font-weight: 400;\">announced<\/span><\/a><span style=\"font-weight: 400;\"> on Sunday that it would intensify its audit of order-based industries, including the construction and shipbuilding industries, amid rising concerns over non-performing loans in real estate project financing and prevalent accounting malpractices. The FSS plans to target practices like overstating project progress and omitting key financial data to falsely appear more profitable amid high interest rates, inflation and rising raw material costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The FSS has emphasized the need for businesses and external auditors to thoroughly assess and accurately report financial realities, promptly accounting for rising construction costs and re-evaluating the recoverability of outstanding work. The FSS aims to mitigate financial risks and ensure the integrity of financial statements.<\/span><\/p>\n<p><b>Why It Matters<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The FSS\u2019 decision to intensify audits in South Korea\u2019s construction and shipbuilding industries is pertinent in light of <\/span><a href=\"https:\/\/koreapro.org\/2024\/01\/south-koreas-major-builder-turns-to-asset-collateral-amid-soaring-debts\/\"><span style=\"font-weight: 400;\">Taeyoung Engineering &amp; Construction\u2019s (E&amp;C)<\/span><\/a><span style=\"font-weight: 400;\"> financial crisis. Taeyoung E&amp;C\u2019s plight, which required a debt-restructuring program due to a liquidity shortage amid soaring real estate project financing loans, reflects a systemic issue in the industry. High interest rates and a faltering property market have compounded these challenges, making the FSS&#8217;s audit a crucial step in safeguarding financial integrity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Accounting malpractices within some companies, aimed at concealing financial struggles, exacerbate the situation. By creating a facade of profitability, businesses can mislead investors and stakeholders, jeopardizing the companies\u2019 long-term viability and posing significant risks to investors. As the sector grapples with mounting debts and declining project viability, a proactive regulatory approach will likely be required to prevent financial contagion that could have cascading repercussions for the overall economy.<\/span><\/p>\n<div class=\"content-tags\"><a href=\"https:\/\/koreapro.org\/tag\/business-economy\/\"><span class=\"tag\">Business &amp; Economy<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>South Korea\u2019s Financial Supervisory Service (FSS) announced on Sunday that it would intensify its audit of order-based industries, including the construction and shipbuilding industries, amid rising concerns over non-performing loans in real estate project financing and prevalent accounting malpractices. The FSS plans to target practices like overstating project progress and omitting key financial data to [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2203663,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24],"class_list":["post-2203659","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefings","tag-business-economy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>South Korea\u2019s financial regulator takes aim at accounting malpractice - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2024\/01\/south-koreas-financial-regulator-takes-aim-at-accounting-malpractice\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Korea\u2019s financial regulator takes aim at accounting malpractice - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"South Korea\u2019s Financial Supervisory Service (FSS) announced on Sunday that it would intensify its audit of order-based industries, including the construction and shipbuilding industries, amid rising concerns over non-performing loans in real estate project financing and prevalent accounting malpractices. The FSS plans to target practices like overstating project progress and omitting key financial data to [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/koreapro.org\/2024\/01\/south-koreas-financial-regulator-takes-aim-at-accounting-malpractice\/\" \/>\n<meta property=\"og:site_name\" content=\"KOREA PRO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/nknewsorg\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-01-28T23:00:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-01-28T14:13:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/koreapro.org\/wp-content\/uploads\/sites\/6\/2024\/01\/eb-21.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1870\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"johnleenknews\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:site\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"KOREA PRO\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/koreapro.org\/2024\/01\/south-koreas-financial-regulator-takes-aim-at-accounting-malpractice\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/2024\/01\/south-koreas-financial-regulator-takes-aim-at-accounting-malpractice\/\"},\"author\":{\"name\":\"johnleenknews\",\"@id\":\"https:\/\/koreapro.org\/#\/schema\/person\/b9766dba611638edc06a6e0b7078714d\"},\"headline\":\"South Korea\u2019s financial regulator takes aim at accounting malpractice\",\"datePublished\":\"2024-01-28T23:00:03+00:00\",\"dateModified\":\"2024-01-28T14:13:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2024\/01\/south-koreas-financial-regulator-takes-aim-at-accounting-malpractice\/\"},\"wordCount\":280,\"publisher\":{\"@id\":\"https:\/\/koreapro.org\/#organization\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2024\/01\/south-koreas-financial-regulator-takes-aim-at-accounting-malpractice\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/01\/eb-21.png\",\"keywords\":[\"Business &amp; Economy\"],\"articleSection\":[\"Briefings\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/koreapro.org\/2024\/01\/south-koreas-financial-regulator-takes-aim-at-accounting-malpractice\/\",\"url\":\"https:\/\/koreapro.org\/2024\/01\/south-koreas-financial-regulator-takes-aim-at-accounting-malpractice\/\",\"name\":\"South Korea\u2019s financial regulator takes aim at accounting malpractice - KOREA PRO\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2024\/01\/south-koreas-financial-regulator-takes-aim-at-accounting-malpractice\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2024\/01\/south-koreas-financial-regulator-takes-aim-at-accounting-malpractice\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/01\/eb-21.png\",\"datePublished\":\"2024-01-28T23:00:03+00:00\",\"dateModified\":\"2024-01-28T14:13:01+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/koreapro.org\/2024\/01\/south-koreas-financial-regulator-takes-aim-at-accounting-malpractice\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/koreapro.org\/2024\/01\/south-koreas-financial-regulator-takes-aim-at-accounting-malpractice\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/koreapro.org\/2024\/01\/south-koreas-financial-regulator-takes-aim-at-accounting-malpractice\/#primaryimage\",\"url\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/01\/eb-21.png\",\"contentUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/01\/eb-21.png\",\"width\":1870,\"height\":1000},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/koreapro.org\/2024\/01\/south-koreas-financial-regulator-takes-aim-at-accounting-malpractice\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/koreapro.org\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"South Korea\u2019s financial regulator takes aim at accounting malpractice\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/koreapro.org\/#website\",\"url\":\"https:\/\/koreapro.org\/\",\"name\":\"KOREA PRO\",\"description\":\"Be smart about South Korea. 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