Samsung Biologics overstated value of affiliate Samsung Bioepis before IPO, watchdog says
As a result, Samsung Group’s biotechnology unit is facing a potential criminal investigation and delisting
Seoul — Samsung Group’s biotechnology unit is facing a potential criminal investigation and delisting after South Korea’s financial regulator said that the company “intentionally” violated accounting rules surrounding an initial public offering (IPO). A securities panel of South Korea’s Financial Services Commission (FSC) said Samsung Biologics deliberately overstated the value of affiliate Samsung Bioepis ahead of its IPO in 2016, which raised about $2bn. The regulator fined Samsung Biologics eight-billion won ($7m) and recommended the company dismiss its CEO. FSC vice-chair Kim Yong-beom said in briefing that it would ask prosecutors to launch a criminal investigation into the accounting violations while stock trading of Samsung Biologics would be halted. The company will also be under review for delisting. Kim said no companies had been delisted on accounting issues in South Korea to date. Latest scandal The scandal is the latest involving a Samsung Group unit, after Jay Y Lee, v...
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