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Samsung BioLogics resumes trading despite controversies
  • By Lee Han-soo
  • Published 2018.12.11 10:50
  • Updated 2018.12.11 10:50
  • comments 0

The Korea Exchange (KRX) has decided to allow continued trading of Samsung BioLogics’ shares on the KOSPI, the country’s main bourse. The company’s trading resumed on Tuesday.

The Financial Services Commission (FSC), the country's financial regulator, suspended the trading of the company last month after ruling that Samsung BioLogics had intentionally violated accounting rules ahead of its initial public offering in 2016.

"Despite some shortcomings regarding its managerial transparency, we have decided to maintain its listing, as we concluded that there was no serious concern about the company's continuity as the company's revenues and profitability have improved," the KRX said. “However, there are still doubts against the company’s transparency in its business operations.”

The committee will keep a close eye over the company’s internal control for the next three years, it added.

The decision has come as a relief for the company as the committee could have decided to remove Samsung BioLogics from the stock market in the worst-case scenario or allowed back on the trading floor after a probation period.

Samsung BioLogics welcomed the decision, stating the swift decision by the committee will in turn help protect investors.

The company also vowed to improve corporate transparency and strive to contribute to the development of the Korean capital market. In its effort to achieve such goals, the company stated that it had strengthened various aspects of its inspection and auditing system.

The company’s share price skyrocketed on the first day it resumed trading. Samsung BioLogics’ shares stand at 391,500 won ($346), a 17.04 percent increase from when the KRX suspended its trading on Nov. 11.

However, the decision to allow continued listing for the company is only a part of the company’s problem.

The company is still in a legal battle with the financial regulator over its accounting fraud allegation.

Samsung BioLogics had filed an administrative suit on Nov. 14 to nullify the financial regulator’s ruling that the company intentionally breached accounting rules to inflate its value before going public in 2016.

“We will prove our accounting legitimacy through the administrative suit. To minimize confusion of investors and clients and to prevent unrecoverable damages during the litigation, we sought the injunction together,” the company said at the time.

corea022@docdocdoc.co.kr

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