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Report: Korea Exchange office raided in Samsung Biologics IPO probe


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Report: Korea Exchange office raided in Samsung Biologics IPO probe

Prosecutors raided the Korea Exchange's Seoul office as part of an investigation on Samsung Biologics Co. Ltd.'s 2016 IPO, Nikkei Asian Review reported.

According to the report, the stock market operator is being investigated for allegedly easing regulations to allow the Samsung C&T Corp. unit to list on the South Korean exchange. Documents and computer hard drives were collected by the authorities, in their search for information on the possible special treatment given to Samsung Biologics' 2016 listing, Nikkei added.

Samsung Biologics shares fell 4.21% to 341,000 South Korean won at market close March 15, following news of the raid.

In May 2018, South Korea's Securities and Futures Commission sent the company preliminary notification which alleged Samsung Biologics breached the country's accounting rules by inflating its net profit ahead of listing in 2016. The investigation, which concluded in July 2018, found Samsung Biologics guilty of intentionally omitting information in a public disclosure regarding Samsung Bioepis Co. Ltd., its joint venture with Cambridge, Mass.-based Biogen Inc., ahead of its listing in 2016.

The South Korean financial regulator, in a final ruling issued November 2018, imposed a fine of 8 billion won on Samsung Biologics and transferred the case to prosecutors.

Incheon, South Korea-based Samsung Biologics develops immunosuppressant biosimilars for medicines such as Enbrel, Remicade and Humira.

As of March 14, US$1 was equivalent to 1,136.48 South Korean won.