14:38 GMT +321 September 2019
Listen Live
    The logo of Samsung Electronic is seen at its headquarters in Seoul, South Korea, in this file photo taken on April 4, 2016.

    South Korean Prosecutors Raid Samsung Offices Amid Ongoing Fraud Probe - Reports

    © REUTERS / Kim Hong-Ji/
    Asia & Pacific
    Get short URL

    MOSCOW (Sputnik) – South Korean prosecutors raided on Thursday offices of the Samsung Group as part of an investigation into suspected accounting fraud on the part of Samsung BioLogics, the company's biopharmaceutical arm, Yonhap news agency reported.

    The raids were carried out because the Financial Services Commission (FSC) had accused Samsung BioLogics of intentionally violating accounting rules, according to the Yonhap news agency.

    The prosecutors searched the offices of one of the group’s most important units, Samsung C&T Corp, as well as the data centre of Samsung’s IT service provider, Samsung SDS Co.

    The prosecutor's office launched its investigation more than three months ago upon finding suspicious account documents for Samsung BioLogics from 2015 that showed a sudden spike in profits after years of losses. This shift took place after Samsung Bioepis, Samsung BioLogics' joint venture with the US-based Biogen Inc., revised the method for calculating its value.

    READ MORE: Closure of Samsung Plant Exposes Vulnerability of Chinese Manufacture Workers

    The possible fraud reportedly benefited Samsung Group's heir apparent, Lee Jae-yong. According to the South Korean financial regulator, the suspected fraudulent accounting could amount to 4.5 trillion won ($4.35 billion).

    Samsung BioLogics has denied the accusations, pointing out that the methodological changes in the company were in line with international accounting standards.

    READ MORE: Research Shows Samsung, Apple Losing to Huawei in China Due to High Price Tags

    IT, raid, Samsung, South Korea
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik