April 26, 2024

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[THE INVESTOR] Korea’s financial regulators have been reviewing the accounting practices of GM Korea, officials said on Dec. 8, amid allegations that it may have inflated the cost of sales.

In a statement, the Financial Services Commission said the Financial Supervisory Service is “closely” reviewing the accounting practices of GM Korea in regards to the allegations raised.

The FSC “will later decide on whether to launch an audit into GM Korea upon consideration of the opinions from the FSS,” the statement said.

The statement came after local media reported that the FSC launched a “special audit” of GM Korea.

For years, concerns have lingered that General Motors may pull out from Korea as the US carmaker has been gradually reducing its presence in the country over poor sales and high labor costs.

By Alex Lee and newswires (alexlee@heraldcorp.com)