Prosecutors Summon Vice Chairman of KTB Securities, 'Lead Underwriter at Samsung Bio IPO' for Investigation

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution investigating Samsung BioLogics' accounting fraud and suspicions surrounding Samsung's management succession summoned a senior executive of Korea Investment & Securities, the lead underwriter of Samsung BioLogics' listing, for questioning.

The Economic Crime Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Bok-hyun) summoned Yoo Sang-ho, Vice Chairman (60) of Korea Investment & Securities, on the morning of the 11th.

The prosecution questioned Vice Chairman Yoo about the facts surrounding Samsung BioLogics' listing on the Korea Exchange in November 2016.

Korea Investment & Securities was the lead underwriter at the time of Samsung BioLogics' listing.

The prosecution is investigating whether there was any illegality in the process where Samsung BioLogics changed the accounting standards for its subsidiary Samsung Bioepis at the end of 2015, resulting in accounting profits of approximately 4.5 trillion won, and subsequently listed on the Korea Exchange the following year.

It is reported that through this method, Samsung BioLogics raised about 2.249 trillion won from investors at the time of listing. The Capital Markets Act prohibits acts of obtaining financial gain by falsely stating or displaying important matters in financial investment product transactions, and the prosecution believes that Samsung BioLogics' actions were illegal.

Additionally, the prosecution is examining whether loans obtained from commercial banks were appropriate while Samsung BioLogics did not reflect the call option (the right to purchase shares at a predetermined price) of its U.S. joint venture Biogen as a liability from 2012 to 2015.

Meanwhile, it is reported that Lee Jae-yong, Vice Chairman of Samsung Electronics (52), who is identified as the highest-level figure in this suspicion, is expected to be summoned for questioning as early as this week.

This content was produced with the assistance of AI translation services.