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Regulator to hold fifth review on suspected accounting breach by Samsung BioLogics

All News 09:29 July 12, 2018

SEOUL, July 12 (Yonhap) -- The financial regulator is set to hold its fifth review session on a suspected accounting breach by Samsung BioLogics Co., officials said Thursday.

The Thursday session, which aims to decide punitive measures financial authorities could take against Samsung BioLogics over the alleged breach, is likely to pave the way for the Financial Services Commission (FSC) to make a final ruling by next Wednesday.

If the FSC judges that the suspected breach was intentional, Samsung BioLogics would face tougher punishments, including a suspension in trading of its shares.

Samsung BioLogics' corporate logo (Yonhap)

If the suspected breach is found to have been caused by negligence, however, the level of punishment would be less severe.

In May, financial authorities gave a preliminary notice to Samsung BioLogics that it broke accounting rules in 2015.

The regulatory review centers on questions about the biopharmaceutical company's sudden profits in 2015 after years of losses. Samsung BioLogics reported a net profit of 1.9 trillion won (US$1.72 billion) that year after changing the method used to calculate the value of its affiliate, Samsung Bioepis.

Samsung BioLogics has claimed that the change was in line with international accounting standards.


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