[Background for Promotion] 

- In cases of "multiple negligent violations," if the violation amount per account title is "less than 4 times the materiality threshold," all are leniently handled with warnings or cautions. It has been pointed out that this fails to effectively block the recurrence of violations and poses problems in the equity of sanctions.

* Accordingly, the Financial Services Commission and the Financial Supervisory Service announced the "Measures to Strengthen Sanctions for Accounting Fraud" on August 27, 2025, and are revising related regulations to strictly respond to accounting fraud.

**It is necessary to enhance the effectiveness of sanctions to prevent the recurrence of legal violations, promote equity in sanctions, and fundamentally improve the company's accounting management system.

[Regulatory Content] 

- Reorganize the criteria for disciplinary measures on cases with 3 or more negligence findings and a violation amount equal to or greater than 8 times the materiality threshold, in alignment with the revision of the Regulations on External Audit (Attached Table 7, Item 5).

* Explicitly stipulate the exclusion of the application of negligence exceptions under the detailed enforcement rules so that measures such as auditor designation and internal accounting management system actions can be imposed.