Regulator to set up task force on accounting fraud
SEOUL, Feb. 4 (Yonhap) -- The financial regulator plans to create a task force in charge of investigating accounting fraud cases amid growing calls for tougher measures against corporations' fraudulent accounting practices, officials said Thursday.
The task force to be comprised of around six experts will be established under the accounting investigation bureau of the Financial Supervisory Service (FSS), according to the FSS officials.
It is in line with the government's pledge to strengthen monitoring and punishment in the wake of a series of fraudulent cases at several local shipbuilders and construction firms.
Last year, Daewoo Engineering & Construction Co. faced a 2 billion-won (US$1.64 million) fine for forging accounting records in an attempt to conceal heavy losses.
Daewoo Shipbuilding & Marine Engineering Co. has also been under a probe on suspicions that the shipbuilder cooked its accounting books involving multibillion dollars to win contracts and attract investments while hiding losses.
"The new entity will mainly deal with major accounting fraud cases so as to bring those responsible for practices that hurt public interests to justice and to uproot such corruptive practices," an FSS official said.