Hynix cooked books, reports claim

September 21, 2004 – Hynix Semiconductor improperly tweaked its financials in 1999 to the tune of nearly $2 billion, according to several reports citing South Korea’s Financial Supervisory Service.

Allegations include substituting expenses with assets under construction, as well as applying false accounting items and registering wrong footnotes when correcting the accounts last year. Hynix reiterated that any accounting problems were not connected with present management, as they occurred while the company was organized as Hyundai Electronics Industry Co.

Nevertheless, South Korea’s Securities and Exchange Commission has fined Hynix about $1.75 million for the errors, and an extra $670,000 to the company’s former outside auditor, Samil Accounting Corp, according to the Asia Pulse Businesswire.

Also, the Supreme Public Prosecutors’ Office noted that violations in 1999 would not be subject to investigation because of expiration of a three-year window of prosecution.


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