Kakao Mobility fined $2.47 million for alleged accounting fraud

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Kakao Mobility fined $2.47 million for alleged accounting fraud

Published: 06 Nov. 2024, 19:04

A taxi partnered with Kakao Mobility [YONHAP]

Kakao Mobility, the operator of the country's most used taxi hailing service provider, was fined for alleged accounting fraud on Wednesday and referred to prosecution for further investigation.

The Securities and Futures Commission, a panel under the Financial Services Commission, imposed a fine of 3.4 billion won ($2.47 million) on Kakao Mobility and fines of 340 million won each on its chief executive and former chief financial officer for allegedly inflating revenue in preparation for a stock market debut.

The regulator will also transfer related documents to the prosecution for further probes into the alleged fraud.

The Financial Supervisory Service fined the company 9 billion won for the same allegations in February.

It was also fined 72.4 billion won in October for allegedly demanding that competing taxi franchises sign partnership deals and blocking their access to its taxi hailing service, Kakao T, if they rejected the offer.

Yonhap