The Korean textile company Hyosung Corp. revealed that over a five year perod it resorted to deceptive accounting to inflate its earnings by more than 150 billion won ($154.8 million).
Hyosung said that between 2001 and 2005, it turned a net loss from its overseas operations into a profit through unfair accounting means.
During the same period it accepted that it failed to record 250.3 billion won in equity investment losses, while overestimating its capital by 351.1 billion won and assets by 100.7 billion won.
The company's 2005 financial statements will have corrected figures.
Hyosung said this will help raise its debt-equity ratio from the present 138 percent to 193 percent.
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