[News Space=Reporter seungwon lee] The Supreme Court has finalized its ruling ordering Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering) to pay 44.18779 billion won in damages to investors, including the National Pension Service, for fraudulent accounting.

This ruling is the first Supreme Court decision among 23 investor lawsuits totaling 165.1 billion won filed in connection with the Daewoo Shipbuilding & Marine Engineering accounting fraud scandal, and is expected to have a significant impact on similar lawsuits currently underway.

The Supreme Court upholds the original verdict and recognizes Hanwha Ocean's liability for damages.

On August 14, the 2nd Division of the Supreme Court (Chief Justice Park Young-jae) dismissed Hanwha Ocean's appeal in the National Pension Service's lawsuit for damages against Hanwha Ocean and Anjin Accounting Corporation, confirming the original judgment.

Accordingly, Hanwha Ocean must pay KRW 44.18779 billion in compensation to the National Pension Service, of which KRW 14.73 billion will be jointly paid by Anjin Accounting Corporation. The ruling acknowledged that the National Pension Service suffered direct losses by purchasing KRW 360 billion worth of Daewoo Shipbuilding & Marine Engineering corporate bonds between 2014 and 2015 based on false financial statements.

Accounting fraud worth 5.7 trillion won... Shocking global financial markets.

An investigation by prosecutors and financial authorities revealed that Daewoo Shipbuilding & Marine Engineering (DSME) manipulated its sales and profits through approximately 5.7 trillion won in fraudulent accounting between 2012 and 2014. Following the revelation of massive losses, including omitted losses in the marine plant division, in July 2015, numerous executives were indicted. Former CEO Ko Jae-ho was sentenced to nine years in prison, and accountants at Anjin Accounting Corporation were also punished. The structural insolvency sparked a public uproar.

The aftermath

of the Supreme Court ruling brings the total number of lawsuits filed against Daewoo Shipbuilding & Marine Engineering (Hanwha Ocean) related to fraudulent accounting to 23, totaling 165.1 billion won. With this first Supreme Court ruling clarifying the company's liability for damages, legal and financial circles at home and abroad are predicting a high likelihood of unfavorable outcomes for Hanwha Ocean and its affiliates in future class action lawsuits.

Impact of the international investment environment and judicial trust

This ruling has garnered significant attention from major domestic and international media outlets, as well as international financial markets. Major international media outlets, including Bloomberg and the BBC, as well as industry publications, have reported on the fraudulent accounting scandals at large Korean corporations, emphasizing the need for increased accounting transparency and stronger investor protection. Meanwhile, the Korean Supreme Court's decisive ruling has been praised for enhancing judicial credibility and is expected to set a precedent for future large-scale accounting fraud cases.

This ruling and its repercussions are expected to have a profound impact beyond simple investor compensation, but also on international trust in Korean corporate governance and the accounting transparency of large corporations.