Financial authorities have launched an investigation into Celltrion's accounting fraud.
The results of the deliberation are drawing attention. According to Hankyoreh, the Financial Services Commission's Supervisory Board recently announced that the Financial Supervisory Service has begun reviewing the accounting investigation measures of Celltrion's three companies.
The Financial Supervisory Service will investigate Celltrion Group's violation of accounting standards and discuss sanctions, including imposing fines, if illegality is found. Earlier, the Financial Supervisory Service will investigate accounting fraud raised by Lee Hak-young, a lawmaker of the Democratic Party of Korea, during a parliamentary audit at the end of 2018.
Celltrion makes biosimilar cloned drugs, and its affiliate Celltrion Healthcare purchases them in large quantities and sells them back to Korea and abroad. In the process, there was a suspicion that it caused fake sales or inflated profits.
In fact, according to Hankyoreh, Celltrion Healthcare has been known to have inventory assets worth 1 trillion won since 2014, which is a Celltrion product.
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Earlier, the Financial Supervisory Service said it has confirmed circumstantial evidence that Celltrion Healthcare and Celltrion Pharmaceutical reduced inventory losses and reflected them in their books.
If you look closely, Celltrion's drug was kept in a warehouse to be resold, but as its value fell, related costs were not properly reflected in its performance, and as a result, it inflated its performance. In addition, the Financial Supervisory Commission is expected to examine the suitability of accounting for the structure of buying and selling products between Celltrion affiliates.
The final action plan will be finalized after the supervision committee, the Financial Services Commission's Securities and Futures Commission, and the Financial Services Commission's approval. In response, Celltrion said, "There is nothing to confirm at the moment."
Reporter Lee Ji-sun stockmk2020@gmail.com
