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Samsung BioLogics Shares Allowed to Remain Listed
Trading Resumes on Dec. 11
Samsung BioLogics Shares Allowed to Remain Listed
  • By Yoon Young-sil
  • December 11, 2018, 10:15
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Trading of Samsung BioLogics shares has resumed following the Corporate Review Committee's conclusion on Dec. 10 to keep the company listed on the local stock market despite its accounting malpractices.

Trading of Samsung BioLogics stock resumed on Dec. 11 as Korea Exchange (KRX) concluded on Dec. 10 that the company could remain listed on the local stock market despite its accounting malpractices.

Trading of Samsung BioLogics stock has been suspended since Nov. 15, as the Securities & Futures Commission (SFC) under the country's financial regulator, the Financial Services Commission (FSC), ruled on Nov. 14 that Samsung BioLogics intentionally violated accounting rules ahead of its initial public offering in 2016.

“Despite some shortcomings regarding the company’s managerial transparency, the Corporate Review Committee of Korea Exchange has decided to maintain its listing, taking into account its corporate sustainability and financial stability," the exchange said in a release.


In this regard, the securities industry says that it is a “preordained conclusion.” The majority of market experts said that there would be a substantial blow to the market when the company with market capitalization of 20 trillion won (US$17.73 billion) and 80,000 individual investors is delisted.


The KRX concluded that there was no serious concern about the company’s continuity considering its business outlook, order backlogs and order plans.

Regarding the company’s financial status, the KRX also concluded that there was no serious concern about default for a considerable period of time because of the public offering in November 2016 and the exercise of the call option by Biogen in November this year.

The KRX said that there were some shortcomings regarding Samsung BioLogics’ managerial transparency as the SFC said the company had intentionally breached accounting rules. However, it said the company submitted its improvement plans to strengthen audit function and internal financial management systems regardless of the outcome of Samsung’s ongoing administrative litigation. In addition, the KRX plans to check whether the company has implemented the improvement plans for managerial transparency.