April 24, 2024

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Prosecutors raided a task force office of Samsung Electronics on May 16 as part of an investigation into allegations that Samsung Group may have ordered accounting fraud by its biopharmaceutical unit.

The investigators were sent to the task force office in charge of business support work for chief executives and Samsung BioLogics to search accounting data and computer hard discs in connection with investigations into its alleged fraudulent accounting.

Samsung BioLogics is alleged to have intentionally violated accounting rules to inflate the value of its subsidiary, Samsung Bioepis, ahead of its 2016 initial public offering.

Investigators are looking into allegations that Samsung Group might have ordered alleged window-dressing by Samsung BioLogics and the destruction of related evidence.

Prosecutors reportedly raided the office of Chung Hyun-ho, a Samsung Electronics president in charge of the task force, and that of Kim Tae-han, Samsung BioLogics’ chairman.

Earlier this month, investigators raided a Samsung BioLogics factory in Incheon, west of Seoul, on suspicions that accounting data that could prove the company‘s alleged fraud was concealed there.

By Ram Garikipati and newswires (ram@heraldcorp.com)