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SOUTH KOREA: Accounting fraud on the increase - watchdog

By just-auto.com editorial team | 12 September 2002

The Korea Herald reports that the Financial Supervisory Service (FSS) financial watchdog is saying that illegal accounting practices in South Korea are on the rise again. The increase follows a temporary downturn in the wake of the 1997 financial crisis in South Korea.

The report says that files provided by the FSS show a surge in the volume of illegally manipulated funds in 2001. The first half of this year has seen the upward spike continue.

"Ever since Daewoo Group's accounting scandal, companies seemed to be taking transparent accounting practices more seriously, but it's started up all over again," FSS lawmaker Ahn Young-keun told the newspaper.

The report adds that the financial watchdog stepped up accounting standards last year following the Daewoo scandal, but experts fear the crackdown seems to be insufficient.