Celltrion 6 billion won Celltrion Healthcare 6.04 billion won Celltrion Pharmaceutical 990 billion won
Celltrion
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Reporter Shim Jae-hoon = The Financial Services Commission imposed a fine of 13 billion won on three Celltrion companies that prepared and disclosed financial statements in violation of accounting standards.
At the 5th regular meeting on the 16th, the Financial Services Commission decided to impose fines on three companies, including Celltrion.
At the meeting, Celltrion was fined 6 billion won, Celltrion Healthcare was fined 6.04 billion won, and Celltrion Pharmaceutical was fined 992.1 million won. The fines for these three companies are all 13.32 billion won.
In addition to these three companies, if we look at the fines for related persons and accounting firms, two people, including the CEO, and Hanyoung Accounting Corporation, were fined 415 million won and 495 million won, respectively, in relation to Celltrion.
Regarding Celltrion Healthcare, fines of KRW 483.9 million were imposed on three people including the CEO, and KRW 41 million and KRW 570 million were imposed on Samjeong Accounting Corporation and Hanyoung Accounting Corporation, respectively.
Celltrions three companies were cleared of charges of fraudulent accounting at the Securities and Futures Commission under the Financial Services Commission on the 11th, but they were sanctioned such as recommending the dismissal of executives in charge and appointing auditors for violating accounting standards.
Previously, the Financial Supervisory Service judged that the three Celltrion companies had committed fraudulent accounting, and in October last year notified the three Celltrion companies and their executives and employees of sanctions in advance, including prosecution.
At the Supervision Committee of the SSC, which began in November of last year, Celltrion exerted all its power to explain the specificity of the biopharmaceutical industry and the ambiguity of related accounting standards.
After comprehensively reviewing the two sides workshops, the SSC considered the violation of these accounting standards by the three Celltrion companies as gross negligence and judged that it was not intentional accounting fraud.
However, poor accounting practices were confirmed, such as inflating sales and reducing losses over a long period of time.
In 2016, Celltrion violated 130 billion won, and in the same year, Celltrion Healthcare and Celltrion Pharmaceutical reported 160 billion won and 13 billion won respectively.
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