Losses incurred due to embezzlement and malpractice by KOSDAQ-listed company officials jumped 44.6 percent this year, data showed Friday, raising investment concerns on South Korea’s secondary stock market.
Losses amounting to 407.2 billion won ($352.9 million) were estimated to have been incurred through 24 cases of misconduct such as embezzlement and corporate negligence in 2011, according to the data by the Financial Supervisory Service, South Korea’s financial watchdog.
The tally includes embezzlement and malpractices filed with the watchdog by firms that trade on the junior KOSDAQ market. The total losses are subject to change according to final court rulings.
The data was a jump from the 281.7 billion won in losses from 19 cases in 2010.
The data also showed that the losses from each case rose 19.6 percent on-year to 17.7 billion won.
Of the KOSDAQ-listed companies that reported embezzlement and malpractice this year, 11 firms have been delisted due to capital shortages and bankruptcies. (Yonhap News)
