KDDI Corporation
Submission of Correction Report for Past Internal Control Reports and Notice Regarding Material Weaknesses in Internal Control over Financial Reporting
KDDI recognized the overstatement of sales and cost of sales due to fictitious circular transactions in the advertising agency business of its consolidated subsidiaries and submitted correction reports retrospectively covering the fiscal years from March 2023 to March 2025.
Key Figures
- Period of Corrected Internal Control Reports: Fiscal Year 39 (April 1, 2022 – March 31, 2023) to Fiscal Year 41 (April 1, 2024 – March 31, 2025)
- Date of Submission of Correction Reports: 2026-03-31
- Timing of Discovery of Fictitious Circular Transactions: Mid-December 2025 to Early January 2026
AI要約
Details of Correction to Internal Control Reports and Material Weaknesses
KDDI Corporation confirmed through a special investigation committee's report that fictitious circular transactions had been conducted over a long period within the advertising agency business of its consolidated subsidiaries Biglobe Inc. and its subsidiary G-Plan Co., Ltd. Consequently, it was revealed that sales and cost of sales were overstated, and correction reports have been submitted retrospectively covering the fiscal years from March 2023 to March 2025. The internal control deficiencies identified include insufficient segregation of duties and inadequate development and operation of internal controls considering fraud risks.
Corrective Measures and Future Actions
Recognizing the critical importance of internal control over financial reporting, KDDI has developed recurrence prevention measures based on the recommendations of the special investigation committee. These include strengthening vendor management, segregation of authority in procurement and proper management of inspection tasks, enhancing risk management for new business ventures, reinforcing audit functions and financial management, fostering ethical awareness, and reviewing management strategies aimed at strengthening group governance. The company intends to promote appropriate establishment and operation of internal controls.
