South Korea's financial regulator said Wednesday it will give a final ruling on whether Samsung BioLogics Co. violated accounting rules, a decision that could lead to the delisting of the biopharmaceutical firm.
The ruling will be announced at around 4:30 p.m., an official at the Financial Services Commission said.
The regulatory probe by the Securities and Futures Commission centers on questions about Samsung BioLogics' sudden profits in 2015 after years of losses. Samsung BioLogics reported a net profit of 1.9 trillion won ($1.68 billion) that year after changing the method used to calculate the value of its affiliate, Samsung Bioepis Co., which is a joint venture with the US-based Biogen Inc.
Samsung Biologics logo (Yonhap)
Critics have argued that Samsung BioLogics might have inflated the profit ahead of its listing in 2016.
In July, the FSC ruled that Samsung BioLogics violated accounting rules by failing to disclose a deal with Biogen on a call option for Samsung Bioepis.
At that time, the FSC delayed a ruling on whether Samsung BioLogics also violated accounting rules by changing the method of calculating the value of Samsung Bioepis.
Samsung BioLogics has claimed that the change was in line with international accounting standards.
Right before attending the FSC's review session earlier in the day, Samsung BioLogics CEO Kim Tae-han told reporters that he will "do his best" to prove the company's innocence.
Samsung BioLogics is an affiliate of Samsung Electronics Co., the world's largest maker of memory chips and smartphones.
Shares of Samsung BioLogics rose 7.5 percent to 337,000 won per share as of 2:55 p.m. on Wednesday. (Yonhap)
