Swiss engineering firm ABB said it will likely take a $100m (£80m) pre-tax hit in its 2016 results after uncovering criminal activity in its South Korean subsidiary.
"ABB has uncovered a sophisticated criminal scheme related to a significant embezzlement and misappropriation of funds in its South Korean subsidiary," the power and automation company said in a statement.
The treasurer of the South Korean unit is suspected of forging documentation and colluding with third parties to steal from the company.
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ABB discovered the financial irregularities after the suspect went missing at the beginning of this month. It's now launching a full investigation in South Korea.
As a consequence of the ongoing investigation, ABB said it will publish its 2016 annual report by 16 March at the latest.
"ABB has initiated mitigating actions to reduce the impact of this criminal activity on its results significantly including recovery of misappropriated funds, legal claims and insurances," the company said. It confirmed the situation was limited to South Korea.