Samsung Arm Faces Criminal Probe After Breaking Accounting Rules

  • Samsung Biologics also faces possible delisting, CEO dismissal
  • Company ‘intentionally’ broke rules surrounding IPO: regulator
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Source: Samsung Biologics

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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.

A securities panel of South Korea’s Financial Services Commission said Wednesday Samsung Biologics Co. deliberately overstated the value of affiliate Samsung Bioepis ahead of its IPO in 2016, which raised about $2 billion. The regulator fined Samsung Biologics 8 billion won ($7 million) and recommended the company dismiss its CEO.