KDDI Says 246.1 B. Yen Overstated via Fictitious Transactions

Tokyo, March 31 (Jiji Press)--Japanese telecommunications company KDDI Corp. said in a report Tuesday that two related companies overstated sales by a total of 246.1 billion yen via fictitious transactions through December 2025.

The report on an internal probe on the scandal involving its internet service subsidiary Biglobe Inc. and G-Plan Inc., a Biglobe affiliate, also said that 32.9 billion yen had flowed out to advertisement agencies not affiliated with the KDDI group.

Eight KDDI executives, including President and CEO Hiromichi Matsuda, will return portions of their executive remuneration. At Biglobe and G-Plan, six executives, including their presidents, resigned, while two employees who were at the center of the misconduct were dismissed on disciplinary grounds.

"We take the matter extremely seriously and offer our sincere apologies," Matsuda said at a press conference on Tuesday.

According to the report, the two employees were in charge of the ad operations across both Biglobe and G-Plan. One began the fictitious transactions by August 2018 at the latest.

[Copyright The Jiji Press, Ltd.]