South Korea's financial watchdog has concluded that Samsung BioLogics breached accounting rules in 2015 and will call on prosecutors to investigate the company’s alleged wrongdoings.
The Securities and Futures Commission announced the result of its audit on the biopharmaceutical firm on Thursday.
The commission's head said the company gravely violated accounting standards by omitting important changes in accounting methods in 2015 despite its knowledge of the potential violations.
The financial regulator said it decided to refer the case to the prosecution, while advising the company to fire related executives and designate an auditor.
The watchdog, however, said it has not reached a conclusion on the allegation that the company made an unfair change over the control over its affiliate, Samsung Bioepis, adding it will request the Financial Supervisory Service(FSS) conduct an audit on the issue.
Samsung BioLogics, which denies any wrongdoing, expressed its regret and said it will consider filing an administrative suit against the watchdog.