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Photo = Yonhap news |
[Alpha Biz= Paul Lee] South Korea’s financial regulators have decided to appeal to the Supreme Court after losing two lower court rulings in an administrative lawsuit filed by Samsung Biologics over accounting fraud allegations.
The case stems from a 2018 decision by the Securities and Futures Commission (SFC), which accused the company of intentionally inflating its financial statements—claims Samsung has successfully challenged in court.
The controversy is closely tied to the succession of Samsung Electronics Chairman Lee Jae-yong, with prosecutors alleging that inflated valuations were used to facilitate a merger that benefited him.
However, recent court rulings have favored both Samsung Biologics and Lee, with the latter receiving a not-guilty verdict in February 2024 on charges including market manipulation and breach of trust.
Despite back-to-back legal defeats, regulators say they will pursue a final ruling from the Supreme Court, citing the broader implications for corporate accountability.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
