A view of the Seoul Central District Prosecutors’ Office located in Seocho-gu, Seoul. [아주경제DB]
Three officials from Deloitte Anjin, one of the four major accounting firms in Korea, were handed over to trial for violating the CPA.
According to law enforcement officials on the 19th, the 9th Division of Criminals at the Seoul Central District Prosecutors’ Office (Director Jeong Jong-hwa) turned over three Deloitte Anjin officials to trial on charges of violating the Chartered Accountants Act the previous day (18th) and completed the investigation. It has been about 9 months since Kyobo Life filed a complaint with the prosecution.
Earlier, Kyobo Life said that Deloitte Anjin has set an valuation base date advantageously to increase the exercise price while calculating the fair market value of the put options (rights to sell at a specific price) held by four of its financial investment (FI) corporations. In April, he filed a complaint with the prosecution.
Kyobo Life Insurance believes that a put option strike price is set as of October 23, 2018, the exercise date, and Deloitte Anjin violated this and set the basis for calculating the fair market value as June 30, 2018. The put option strike price was overvalued as the stock prices of major similar companies peaked in late 2017 and early 2018.
At the time, Kyobo Life’s legal attorney, Jiu, said in a complaint, “The fair market value calculated by Deloitte Anjin is an amount that cannot be calculated unless the client participates in obtaining an unfair advantage. It was found that there are many data.”
At the end of March last year, Kyobo Life also accused Deloitte Ahn-Jin of the US Accounting Supervisory Commission (PCAOB) for violating accounting evaluation standards.
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