Investing
Added: (Fri Jan 25 2019)
Pressbox (Press Release) -
Korean court suspends disciplinary action against Samsung BioLogics
A South Korean court, has suspended disciplinary action by financial regulators against Samsung Biologics Co LTD for ‘allegedly’ breaching accounting regulations, and official at Seoul Administrative court made public on Tuesday.
In November, South Korean financial services commission, made a statement in which it highlighted Samsung Groups ‘alleged’ intentional accounting rule breach ahead of its 2016 listing. The Commission had called for the companies CEO and CFO to be fired, fined and for the company to adjust its balance sheet to show the correct figures.
Samsung BioLogics filed an administrative Lawsuit at the Seoul administrative court in an attempt to nullify the findings, and sough after an injunction to halt any disciplinary action until the court makes a ruling on the matter.
“The court concluded that an immediate sanction on the company could lead to irreparable damage when its violation of accounting standards has yet to be proven in court,” A court official stated, who did not want to be identified due to the sensitive nature of the case.
A spokesperson for Samsung BioLogics, which has denied all claims, confirmed the court’s decision to suspend and sanctions until further notice.
“The court’s decision is fortunate. We will do our best to prove the legitimacy of the company’s handling of accounting,” a Samsung spokesperson said by telephone.
Samsung is now playing the waiting game, as they await the decision from the prosecutor’s investigation, which as of the current moment has no set date. The financial services commission is yet to comment on the case, as they understand it is a sensitive subject.
All of this has come to light after Samsung Biologics head office was raided in December by South Korean prosecutors, part of a probe into alleged accounting fraud, after regulators noticed some inconsistencies. Following the regulators findings, shares of Samsung BioLogics were suspended, and resumed trading again late December after the court decided the company was qualified to remain listed.
Shares were up 0.1% on Tuesday, despite a 0.7% decline in the kospi benchmark share price index KS11.
Derick Chung – Securities Bureau