Findings of the investigation into fictitious circular transactions with no underlying substance (the fictitious circular transactions in question)
ジー・プラン, BIGLOBE, and the KDDI Group
The advertising agency businesses of ジー・プラン and BIGLOBE (web advertising transactions)
Insufficient knowledge across the company of, and insufficient risk sensitivity to, the advertising agency business; concentration of operations in specific individuals and inadequate checks and balances; insufficient management by the business divisions; inadequate judgment concerning group finance; and inadequate internal audits, among other factors. In the case of a氏, the individual considered recording fictitious sales to cover losses and achieve sales targets.
Revenue requiring correction: ¥246.1 billion; gross profit requiring correction: ¥49.9 billion; external cash outflows: ¥32.9 billion (total from before the fiscal year ended March 2023 through the cumulative third quarter of the fiscal year ending March 2026)
Prior to the fiscal year ended March 2023, the fiscal year ended March 2024, the fiscal year ended March 2025, and the cumulative third quarter of the fiscal year ending March 2026
Company response
Special Investigation Committee. KDDI commissioned the investigation on 14 January 2026. The chair was Natori Toshiya (名取俊也), attorney-at-law, and the members were Hen Seiyu (辺誠祐), attorney-at-law, and Sato Yasunori (佐藤保則), certified public accountant. The investigation period was from 14 January to 31 March 2026.
Strengthen fraud risk assessments and risk management systems for new businesses; eliminate opportunities for fraud by reviewing business division structures; eliminate excessive dependence on specific individuals; thoroughly segregate authority in ordering and payment processes; strengthen business reviews and fraud detection functions by corporate departments; strengthen credit management; establish procedures for confirming the eligibility of suppliers; verify supporting evidence for revenue recognition and payment processes; adopt accounting practices that place greater emphasis on cash flow; strengthen internal audit structures and methods; promote understanding of businesses in which the company has limited expertise; strengthen and improve risk sensitivity; review business activities and establish risk detection systems; strengthen efforts to understand the actual state of internal controls and segregation of duties at subsidiaries; strengthen the human resources foundation for managing investees; strengthen confirmation of the appropriateness of funding needs in group finance; strengthen subsidiary management and centralize and integrate financial management functions; review subsidiary audit methods; and enhance group internal audits.
Related procedures
Voluntary investigation by the Special Investigation Committee
The Special Investigation Committee expects management to take the lead in formulating and steadily implementing effective measures to prevent recurrence tailored to the management systems of each group company.
| Item | Details |
|---|---|
| Event name | Findings of the investigation into fictitious circular transactions with no underlying substance (the fictitious circular transactions in question) |
| Date of occurrence | Continued from no later than August 2018 through December 2025 |
| Date recognized / date notice received | December 2025 (a氏 admitted to the conduct after delays in payments from certain upstream agencies) |
| Subject Entity | ジー・プラン, BIGLOBE, and the KDDI Group |
| Target Locations / Products | The advertising agency businesses of ジー・プラン and BIGLOBE (web advertising transactions) |
| Cause | Insufficient knowledge across the company of, and insufficient risk sensitivity to, the advertising agency business; concentration of operations in specific individuals and inadequate checks and balances; insufficient management by the business divisions; inadequate judgment concerning group finance; and inadequate internal audits, among other factors. In the case of a氏, the individual considered recording fictitious sales to cover losses and achieve sales targets. |
| Amount of Impact on Business Performance | Revenue requiring correction: ¥246.1 billion; gross profit requiring correction: ¥49.9 billion; external cash outflows: ¥32.9 billion (total from before the fiscal year ended March 2023 through the cumulative third quarter of the fiscal year ending March 2026) |
| Accounting period in which recognized | Prior to the fiscal year ended March 2023, the fiscal year ended March 2024, the fiscal year ended March 2025, and the cumulative third quarter of the fiscal year ending March 2026 |
| Type of litigation or proceeding | Voluntary investigation by the Special Investigation Committee |
| Investigation structure | Special Investigation Committee. KDDI commissioned the investigation on 14 January 2026. The chair was Natori Toshiya (名取俊也), attorney-at-law, and the members were Hen Seiyu (辺誠祐), attorney-at-law, and Sato Yasunori (佐藤保則), certified public accountant. The investigation period was from 14 January to 31 March 2026. |
| Measures to prevent recurrence | Strengthen fraud risk assessments and risk management systems for new businesses; eliminate opportunities for fraud by reviewing business division structures; eliminate excessive dependence on specific individuals; thoroughly segregate authority in ordering and payment processes; strengthen business reviews and fraud detection functions by corporate departments; strengthen credit management; establish procedures for confirming the eligibility of suppliers; verify supporting evidence for revenue recognition and payment processes; adopt accounting practices that place greater emphasis on cash flow; strengthen internal audit structures and methods; promote understanding of businesses in which the company has limited expertise; strengthen and improve risk sensitivity; review business activities and establish risk detection systems; strengthen efforts to understand the actual state of internal controls and segregation of duties at subsidiaries; strengthen the human resources foundation for managing investees; strengthen confirmation of the appropriateness of funding needs in group finance; strengthen subsidiary management and centralize and integrate financial management functions; review subsidiary audit methods; and enhance group internal audits. |
| Outlook | The Special Investigation Committee expects management to take the lead in formulating and steadily implementing effective measures to prevent recurrence tailored to the management systems of each group company. |
Items this document does not state (13)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Despite there being no commissions from advertisers, the companies placed and accepted orders for fictitious advertising placement services as though such commissions existed, in an effort to cover losses and achieve sales targets. The background factors included insufficient knowledge of and risk sensitivity to the advertising agency business, concentration of operations in specific individuals, and inadequate checks and balances, management and internal audit functions.