Samsung BioLogics CEO responds to regulator's accountancy claims

04-Dec-2018 - Last updated on 04-Dec-2018 at 14:40 GMT

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Related tags Samsung biologics South korea

CEO remains confident its ‘accounting treatment has been proper’, and the company has filed a lawsuit against the South Korean regulatory body.

The South Korean contract manufacturing organisation (CMO) also revealed that it had applied for an order to stay the disposition against the company and is working to be re-listed on the Korea Exchange.

Last month, the Securities and Futures Commission (SFC) ruled that Samsung BioLogics had intentionally violated accounting practice ahead of an initial public offering (IPO).

The South Korean regulator recommended the dismissal of the company’s CEO, issued a fine of KRW 8bn ($7.1m) and referred the case to prosecutors. As a result of the findings, the Korea Exchange delisted the company from the national stock exchange.

In a statement, Samsung BioLogics CEO, Tae-Han Kim, said: “We deeply regret the findings of the SFC as we are confident that our accounting treatment has been proper under the K-IFRS. As such, we filed an administrative lawsuit against the SFC on October 8 regarding the 1st audit result and another administrative lawsuit against the SFC on November 27 regarding the 2nd audit result.”

Kim explained that the aim of the lawsuit is to prove that the company’s accounting was legal.

In a move to reassure stakeholders in the company, the CEO also revealed that the company has cash reserves of 1 trillion KRW. He stated that it is ‘unlikely’ that daily business would be impacted by the SFC’s actions.