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.
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“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.
