The Financial Supervisory Service announced Thursday that following an investigation of 75 listed companies 1997 audit reports, it had uncovered 36 companies guilty of falsifying accounts including Samsung Electronics, Hyundai Motors and Tongyang Steel. The service said that in Samsung's financial reports audited by Samil, the electronics company failed to report the transfer and sales to two subsidiaries and an overseas investment fund of US$715 million in Samsung Motor shares, which it promised to buy back in 2007. Tongyang Steel auditors Ahnjin removed an overall annual loss of W11 billion by misreporting costs and exaggerating sales.

Similar cases were found at Samyang, Shinsegae Trust, Samsung Electronics, Samsung Trading and Hankook Development and Leasing all audited by Samil; Joongang Merchant Bank, Taeil Precision, Hankook Tire and Asia Motors audited by Sangdong; Tongyang Steel Pipe, Hyundai Motors, Koryo Chemicals and Pulmoowon by Ahnjin; Booil Mobile Communications, Taehan Electric Cable, Taehan Flour by Saedong; Ilji-Tech by Yonghwa; Segae Trading, Bongshin, Tonghae Pulp, Hanbo Steel and Kia Motors by Chongwoon; Jinro, Tongbang, LG Metals, Daeyong Packaging by Samdok; Hanil Pharmaceuticals, Taeyang E & TECH, Songji Construction, Chungoo, Tongyang Steel, Kisan, Hexim Teletech by Angon; and Sogwang and Ssangyong Paper by Shinhan.

(Park Jong-sae, jspark@chosun.com)