Samsung Biologics to face criminal probe on accounting fraud

By Associated Press

SEOUL, South Korea (AP) — A South Korean regulator says Samsung Biologics has intentionally breached accounting rules.

The Financial Services Commission said Thursday that it will bring the case to prosecutors and ask Samsung Biologics to dismiss executives in charge of accounting breaches.

It says the company has failed to notify investors of crucial information related to its joint venture agreement with Biogen, a U.S. biotechnology company. The missing information affected the valuation of its subsidiary.

The commission says Samsung Biologics was aware that leaving out such information could constitute a violation of accounting rules.

Samsung officials did not respond to messages seeking comments. It has earlier denied the allegation.

Samsung Biologics is a contract drug making affiliate of Samsung Electronics and Samsung C&T.

This article provided by NewsEdge.