As an arrest warrant for Kim Tae-han, CEO of Samsung BioLogics, has been dismissed, the company is expected to step up efforts to put its business back on track.
The Seoul Central District Court dismissed on July 20 the arrest warrant for Kim sought by the prosecution for his involvement in the company's alleged accounting fraud. The company has allegedly inflated its book value by 4.5 trillion won by changing its accounting standards without justifiable reasons.
The court’s dismissal of the arrest warrant against Kim has reduced the uncertainty over the company’s future, allowing the CEO to focus on implementing his business plans for the second half of the year. Kim came to his office in Songdo, Incheon and worked as usual on July 20, a company official said.
In particular, Kim is expected to redouble efforts to expand the company’s contract development organization (CDO) business. At the annual general meeting of shareholders in March, Kim pledged to increase the cumulative number of contracts to over 50 in 2020. Currently, the company has won a total of 28 CDO deals.
Samsung BioLogics is expected to bolster efforts to win orders for its third plant. The company has a total biomedicine production capacity of 362,000 liters, the world’s largest. The total breaks down to 30,000 liters at Plant 1, 152,000 liters at Plant 2 and 180,000 liters at Plant 3. The company’s order backlog for Plant 3 was 25 percent of its production capacity at the beginning of this year. It plans to raise the ratio to 50% by the end of the year.
However, as the prosecution announced that they will file with the court another request for an arrest warrant against Kim, Kim’s range of activities are still limited. It is unclear whether Kim will be able to attend large-scale international events in the second half of this year.