KDDI Corporation announced that its consolidated subsidiaries, “BIGLOBE” and “G-PLAN,” are suspected of having conducted massive fictitious transactions.
The over-reported revenue amounts to approximately 246 billion yen, sending shockwaves through the telecommunications industry.
This article provides a detailed explanation of the scandal’s overview and its future implications.
1. Overview of the Incident: Why Did the Massive Overstatement Occur?
The stage for this fraud was set by major ISP Biglobe and its subsidiary G-Plan.
- Fraudulent Scheme
Repeated fictitious transactions were conducted with non-existent advertisers under the guise of advertising agency services. - Scale of Overstatement
The cumulative amount reached approximately ¥246 billion. - Funds Outflow
Approximately ¥33 billion may have been diverted externally under the guise of “commission fees.”
2. KDDI’s Response and Impact on Earnings Announcement
In response to this situation, KDDI President Matsuda apologized at a press conference. The company is currently implementing the following measures:
- Establishment of a Special Investigation Committee
An investigation by external lawyers and others is currently underway. - Postponement of Financial Results Announcement
The originally scheduled announcement of consolidated financial results for the entire group has been postponed. - Expected Receipt of Report
The plan is to compile the investigation findings by the end of March 2026.
President Matsuda’s Statement:
“We sincerely apologize for the immense inconvenience and concern this has caused.”
3. Key Points to Watch and Market Impact
Investors and users are concerned about the future course of earnings revisions and the restoration of trust.
- Scale of Adjustment to Consolidated Results
How significantly will this massive ¥246 billion adjustment impact KDDI’s parent company net profit? - Restructuring of Governance Framework
The lax oversight of subsidiaries has been exposed, raising questions about future recurrence prevention measures. - Pursuit of Legal Liability
The whereabouts of the ¥33 billion externally leaked funds and legal action against those involved.
Summary
This fictitious transaction scandal is shaking the KDDI Group to its core. The investigation report scheduled for release at the end of March is expected to reveal more detailed methods and background information.
Attention is focused on KDDI’s next move to restore trust.
