Korea fines Doosan Enerbility $12 mn for improper bookkeeping

South Korea’s top financial regulator said on Wednesday it will fine local major power plant builder Doosan Enerbility Co. 16.1 billion won ($12 million), a record penalty for inappropriate bookkeeping, related to losses from an Indian project.

The Financial Services Commission (FSC) made the decision following an investigation by the Financial Supervisory Service (FSS) since 2021 over allegations that the company did not reflect huge losses from an Indian power plant project in its annual financial statements from 2017 to 2020.

The company, formerly Doosan Heavy Industries & Construction Co., was suspected of trying to conceal a nearly 300 billion won loss from a 2.8 trillion won project to build two thermal power plants in the South Asian country.

The fine is the highest-ever for accounting irregularities in South Korea, topping a combined 13 billion won in penalties levied on Celltrion Inc. and its two affiliates in 2022.

Local financial authorities have significantly stepped up punishments against intentional accounting frauds by introducing tougher rules in November 2018 after the multi-billion dollar accounting scandal that rocked Daewoo Shipbuilding & Marine Engineering Co.

Write to Han-Shin Park at phs@hankyung.com
 

Jongwoo Cheon edited this article.