BUSINESS

Samsung BioLogics apologizes for destructing evidence of alleged fraud

By Lim Jeong-yeo
  • Published : Jun 14, 2019 - 16:58
  • Updated : Jun 14, 2019 - 16:58

Samsung BioLogics on Friday apologized for the destruction of evidence related to alleged accounting fraud involving its affiliate Samsung Bioepis.

Samsung BioLogics and Samsung Bioepis said in a joint statement, “We deeply regret the unsavory circumstances resulting from disgraceful acts such as the destruction of evidence.”

“We feel gravely responsible for the arrest of our officials and the subsequent difficulties in management,” they added.


(Samsung BioLogics)

“In order to prevent recurrence of such events, we will review and overhaul our data system for law-abiding management.”

Samsung BioLogics and Samsung Bioepis said they will collaborate with the ongoing prosecutorial investigation.

Top-ranking officials of Samsung Group are being summoned for investigation for allegedly ordering the destruction of evidence related to accounting irregularities in 2015, a move suspected to be motivated to help Samsung Electronics Vice President Lee Jae-yong speed up his succession of the group’s leadership.

The accounting fraud allegedly occurred in 2015, when the group changed the method used to calculate the value of Samsung Bioepis, inflating the valuation of Samsung BioLogics prior to its initial public offering in 2016.

Civic activists say the move was a scheme to expand Lee’s control of Samsung Group by seeking to inflate Cheil Industries Inc.’s stake in Samsung BioLogics ahead of Cheil’s merger with Samsung C&T Corp. in 2015.

Prosecutors suspect that the alleged scheme to destroy evidence of such manipulation of accounting was approved at a Samsung Group top-level meeting on May 10, 2018, after the issue broke out.

Lee and his close aide Samsung Electronics President Chung Hyun-ho were reportedly present at the meeting.

Chung underwent 17 hours of questioning by prosecutors and returned home Wednesday morning. Prosecutors are considering summoning Lee.

By Lim Jeong-yeo (kaylalim@heraldcorp.com)


LEADERS CLUB