Haitai Confectionery and Foods faces a Korea Exchange review over whether it can remain listed after South Korean regulators sanctioned the company for accounting violations involving 53.028 billion won, or about $38 million. Trading in its shares was suspended at 6:09 p.m. the previous day while the exchange considers a disclosure related to the case. The Securities and Futures Commission, an arm of the Financial Services Commission, ordered the company to use a designated external auditor for three years after finding that it overstated revenue and cost of sales from 2016 to 2019 through false tax invoices and unrecorded discounts and rebates. Regulators also found that the company obstructed its external audit, referred the former head of its finance division and a former internal auditor to prosecutors, and recommended disciplinary action against both. Haitai said the issue involved field staff more than seven years ago, that it re-audited and restated its 2016-2019 financial statements, and that it has strengthened its internal controls since 2020. The Financial Services Commission will finalize monetary penalties, while the Korea Exchange will decide whether to send the listing matter to its listing committee.