SEOUL (Reuters) – South Korea’s bourse operator said it will begin a formal review on whether to delist shares of Samsung BioLogics <207940.KS> over alleged violation of accounting rules.
Once the formal review begins, the bourse plans to decide by the end of December whether the company will be delisted or not, the Korea Exchange said in a statement on Friday.
Trading in shares of Samsung BioLogics, the biotech drug arm of South Korea’s top conglomerate – Samsung Group, has been suspended since Nov. 14, immediately after the financial regulator said the company had intentionally breached accounting rules ahead of its listing in 2016.
The company has denied any wrongdoing. Earlier this week, it said it had filed an administrative lawsuit against the regulator Financial Services Commission.
During the bourse’s review, trading of BioLogics shares will remain suspended.
(Reporting by Hayoung Choi, Ju-min Park; Editing by Himani Sarkar)