KDDI Corporation
Receipt of the Special Investigation Committee’s Report on Suspicious Inappropriate Transactions at Our Consolidated Subsidiaries and Our Future Response
It was revealed that fictitious circular transactions were conducted at KDDI’s consolidated subsidiaries Biglobe and G-Plan from August 2018 through December 2025, resulting in accounting fraud with approximately JPY 2.461 trillion in overstated net sales, JPY 150.8 billion in operating income, and about JPY 329 billion in external outflows. Two involved employees were dismissed for disciplinary reasons, several executives resigned or returned their remuneration. Recurrence prevention measures have been formulated and will be implemented.
Key Figures
- Overstated net sales due to fictitious circular transactions: Approx. JPY 2.461 trillion
- Overstated operating income due to fictitious circular transactions: Approx. JPY 150.8 billion
- External outflow amount due to fictitious circular transactions: Approx. JPY 329 billion
AI要約
Summary of Investigation Results
The Special Investigation Committee uncovered that fictitious circular transactions without substance were conducted at Biglobe Inc. and G-Plan Inc., consolidated subsidiaries of KDDI, between August 2018 and December 2025. These fictitious transactions involved the advertising agency business whereby money circulated through 21 agencies, resulting in an overstatement of approximately JPY 2.461 trillion in net sales and JPY 150.8 billion in operating income, alongside an external fund outflow of about JPY 329 billion. Two involved employees were dismissed for disciplinary reasons, and multiple executives resigned or returned their remuneration.
Future Response and Recurrence Prevention Measures
KDDI recognizes this matter as a serious issue and has formulated, and will sequentially implement, recurrence prevention measures to strengthen governance across the entire group. Specific measures include strengthening vendor management, segregation of authority in purchasing operations, enhancement of risk management and cash flow management, promotion and awareness of the internal whistleblower system, reinforcement of the internal audit system, fostering corporate ethics, and reviewing group management strategies. Strict disciplinary actions will be taken against officers and employees involved to regain trust.
