[THE INVESTOR] Samsung BioLogics CEO Kim Tae-han reaffirmed key shareholders on Nov. 30 that the company’s accounting practice was legitimate, seeking a court injunction to nullify disciplinary actions by the country’s financial regulator.
In two separate rulings, the Securities and Futures Commission of the Financial Services Commission concluded that the contract drug manufacturer intentionally breached accounting rules in 2015 and recommended the firm to dismiss executives involved in the case.
Samsung BioLogics CEO Kim Tae-han
“We are confident that our accounting treatment was legitamate under the K-International Financial Reporting Standards ... as such we have filed an administrative lawsuit against the SFC. Through this lawsuit, we aim to have the legality of the accounting treatment recognized,” the CEO wrote in a letter posted on the firm’s website.
The remarks come amid growing uncertainty over its shares, with a market cap of 22 trillion won (US$19.60 billion), which were suspended from trading following the recent SFC ruling.
“The company is making its best efforts to cooperate with the listing maintenance review of the Korea Exchange so that trading can be resumed as soon as possible,” he said.
Meanwhile, the bourse operator said on Nov. 30 that it has decided to put Samsung BioLogics under review for a potential delisting.
The trading halt is expected to continue until the KRX makes a final decision on Dec. 31.
By Park Han-na (firstname.lastname@example.org)