South Korea-based biopharmaceutical company Samsung BioLogics is likely to face disciplinary measures due to an alleged accounting breach.

The country’s financial watchdog is close to completing its reinvestigation into the alleged accounting violations of Samsung BioLogics. This probe is believed to have drawn the same conclusion as the first round of examination, according to Pulsenews.

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In July, the Securities and Futures Commission (SFC), which is the auditing unit of Financial Services Commission (FSC), withheld verdict on irregularities in accounting practice claimed by the Financial Supervisory Service (FSS). It ordered the FSS to revisit the issue.

The FSS, however, has reportedly drawn the same conclusion and is likely to refer the issue to prosecutors for further probe and this may lead to fines of up to KRW6bn ($5.32m).

SFC may ease penalty during the final review, reported the website.

On Wednesday, following the report, the company’s shares dropped by 7.8%, which is its lowest since August, as reported by Financial Times.

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“Samsung BioLogics has reportedly committed to take legal measures against the government offices.”

The watchdog claimed that the firm had violated accounting practices in 2015 to boost the value of Samsung Bioepis before going public. Samsung Bioepis is a joint venture with US-based biotech firm Biogen.

Accounting breach have been found dating back to 2012.

This month, the FSS is likely to serve a preliminary notice to the firm as well as its auditors on measures regarding the alleged breach. Following this, the disciplinary measures are likely to be discussed by the SFC and then finalised by the FSC at the end of the year.

Samsung BioLogics has reportedly committed to take legal measures against the government offices and also submitted self-remedial proposals to opt for a settlement out of court.

Samsung Group is already facing pressure to address labour problems besides reducing the complexity of its ownership structure.

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