Discussion with the Securities and Futures Commission (SEC) about Celltrion, which is suspected of accounting fraud, such as inflating inventories, will begin as early as next week. The financial investment industry is of the opinion that even if intentionality is proven, the possibility of delisting is low in light of the case of Samsung Biologics.
According to the financial authorities on the 15th, it is reported that the SSC is planning to present the Celltrion agenda as early as next week, referring to the supervision of the Financial Supervisory Service and the individual opinions of eight supervisory members. Celltrion is under suspicion of accounting fraud, including inflating its inventory. According to the Kyunghyang Shinmun report, Celltrion Healthcare and Celltrion Pharm are selling drugs developed by Celltrion, and in the process, Celltrion Healthcare purchased Celltrion drugs and reduced the amount of inventory loss accumulated in inventory.
As the news spread, Celltrion’s stock price fell 12.31% (24,000 won) from the previous trading day to 171,000 won. During the day, it fell to 170,000 won, setting a new 52-week low. In addition, Celltrion Healthcare and Celltrion Pharmaceutical were also sluggish at -12.39% and -12.00%, respectively.
The final action plan will be finalized after deliberation by the Supervisory Committee through a resolution by the SSC and the Financial Services Commission. Previously, in the case of Samsung Biologics, it took about five months from the conclusion of the Financial Supervisory Service to the final decision of the SSC and FSC.
Park Jae-kyung, a researcher at Hana Financial Investment, said, “If it is concluded that the final accounting violation is the result of a final accounting violation, a review will be held.” “Generally, a decision is made within 15 days. “He said.
He said, “If intentionality is proven, the prosecution can notify and accuse the prosecution according to the importance determined by the scale.” But the chances are low,” he said.
Researcher Park explained that even in the case of total capital encroachment, it is subject to listing qualification examination, but the possibility is low. As of the third quarter, the equity capital of Celltrion and Celltrion Healthcare is 3.94 trillion won (capital: 137.9 billion won) and Celltrion Healthcare is 2.3 trillion won (capital: 155 billion won), which is high.
Stock trading is suspended if it is subject to a substantive examination for listing eligibility. until it is recognized that the cause has been resolved. Previously, in the case of Samsung Biologics, trading was suspended for 19 days from November 15, 2018 to December 10, 2018, after it was concluded as fraudulent accounting.
The possibility of delisting is considered low. Researcher Park said, “In the case of Samsung Biologics, it was judged on purpose and after the suspension of trading, a substantive review of eligibility was conducted, but the exchange decided to keep the listing. ” he said.
Another official from the financial investment industry also said, “Even if there is a reason for delisting, it is difficult to lead to delisting because Celltrion has a large impact on the domestic capital market. ” he said.
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