Keum Yang faces prosecution referrals, management sanctions and delisting after South Korea’s Securities and Futures Commission found accounting and audit violations involving 10.3 billion Korean won in 2022 revenue. The company used false tax invoices and other documents to make unsold inventory appear sold, overstated equity by consolidating a jointly controlled Mongolian unit and failed to recognize impairment losses. Regulators also said Keum Yang moved inventory during an external audit and later submitted falsified receipts. Measures include three years of designated auditing, a recommendation to dismiss the chief executive, suspension from duties and referrals involving the company and executives. The Korea Exchange ordered the company delisted in May, and Keum Yang has sought an injunction while failing to file its half-year report for the year.