The Financial Services Commission (FSC)'s disciplinary action against Samsung BioLogics will cease to be effective until the final ruling regarding the original lawsuit.
|Samsung BioLogics; headquarters in Songdo, Incheon.|
The Supreme Court made a decision Tuesday to dismiss re-appeal made by the FSC regarding the previous ruling made by the Seoul Administrative Court to suspend the FSC's disciplinary action against Samsung BioLogics for alleged disclosure violation.
FSC had judged that Samsung Biologics intentionally violated accounting rules ahead of its initial public offering in 2015 by changing the status of Samsung Bioepis from a subsidiary to an affiliate.
It then demanded the company to fire its CEO and CFO while imposing fines of 8 billion won ($7.1 million), requiring the firm to correct its balance sheet and receive audits by a designated external auditor for three years.
In response, Samsung Biologics applied for suspending the administrative order imposed by the FSC until the court's final decision, which the court accepted in January this year.
The FSC immediately appealed against the Seoul Administrative Court's decision to the Seoul High Court and re-appealed to the Supreme Court in May after the first appeal was rejected.
As the Supreme Court rejected the FSC's re-appeal once again, however, Samsung BioLogics has earned some time before the final court ruling.
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