South Korea’s financial regulator on Wednesday suspended the stock trading of Samsung BioLogics, upon the decision that it had intentionally violated accounting rules to exaggerage its profits before listing.
The Securities and Futures Commission of the Financial Services Commission
“Samsung BioLogics intentionally violated the accounting rules in 2015, ahead of its listing in the following year,” FSC Vice Chairman Kim Yong-beom, who leads the SFC, said in a press briefing.
|FSC Vice Chairman Kim Yong-beom speaks during a press briefing on Tuesday. (Yonhap)|
The regulator also said it recommends resignation of the firm’s CEO.
Following the announcement, the biotech company’s stock trading is to be suspended from 20 days starting Thursday while Korea Exchange determines the legitimacy of the case and, if necessary, the level of sanction, ranging from temporary trading suspension or delisting.
But considering circumstances such as the impact on the market and investors, the possibility of delisting remains low, according to observers.
By Bae Hyun-jung, Sohn Ji-young (email@example.com)