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(LEAD) Regulator concludes 'intentional' accounting breach by Samsung BioLogics

2018/07/12 16:17

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(ATTN: UPDATES with regulator's ruling in first 2 paras; CHANGES headline)

SEOUL, July 12 (Yonhap) -- The financial regulator said Thursday it has concluded that a 2015 accounting breach by Samsung BioLogics Co. was intentional and the biopharmaceutical company clearly violated accounting rules.

The ruling by the Financial Services Commission (FSC) is expected to deal a serious blow to Samsung BioLogics, which has strongly denied allegations of accounting breach.

Samsung BioLogics' corporate logo (Yonhap) Samsung BioLogics' corporate logo (Yonhap)

In May, financial authorities gave a preliminary notice to Samsung BioLogics that it broke accounting rules in 2015.

The regulatory probe centers on questions about the biopharmaceutical company's sudden profits in 2015 after years of losses. Samsung BioLogics reported a net profit of 1.9 trillion won (US$1.72 billion) that year after changing the method used to calculate the value of its affiliate, Samsung Bioepis.

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