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.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
“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.