Regulator investigates Samsung BioLogics for cooking books before 2015

Business | 13 Jun 2018 4:58 pm

South Korea's financial regulator has decided to expand an inquiry into Samsung BioLogics Co's suspected accounting breach to include its books before 2015, officials said.

The regulatory review centers on questions about the biopharmaceutical company's sudden profit in 2015 after years of losses. Samsung BioLogics reported a net profit of 1.9 trillion won that year after changing the method of calculating the value of its affiliate, Samsung Bioepis, Yonhap reports.

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

In a statement, the Financial Services Commission said it decided to review accounting practices of Samsung BioLogics before 2015 to better judge whether the suspected accounting breach was intentional.

Reviewing past accounting practices will also help financial authorities make a final ruling on the suspected breach, the FSC said.

Financial authorities gave a preliminary notice earlier last month to Samsung BioLogics that it broke accounting rules in 2015, a charge strongly denied by the unit of Samsung Electronics.

Since then, financial authorities have held three rounds of reviews regarding the alleged accounting breach, but the reviews apparently failed to reach a consensus, prompting FSC officials to say there were some "majority and minority opinions" about the case.

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