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Daewoo E&C probed for accounting fraud

Daewoo E&C probed for accounting fraud

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Published : 2013-12-17 21:14
Updated : 2013-12-17 21:14

The Financial Supervisory Service has launched a probe into alleged accounting fraud by Daewoo Engineering & Construction Co., officials said Tuesday.

The FSS said it opened the investigation after obtaining information on suspicions of window dressing by the country’s third-largest construction company.

The builder’s stock price fell after the news of the probe launch, hitting 6,940 won per share, down 11.14 percent from the previous day.

“The price is expected to continue to drop for the moment, as the regulator seems determined about (investigating) Daewoo’s irregularities,” an analyst said.

The financial authority began its investigation after recently “being informed about suspicions concerning Daewoo” from an undisclosed source, the FSS said in a statement on Monday.

The embattled construction company’s accounting firm is Samil PricewaterhouseCoopers, the largest accounting services firm in Korea and part of the PwC global network.

By Chung Joo-won (joowonc@heraldcorp.com)

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