SEOUL (Reuters) - South Korea's main stock exchange has decided Samsung BioLogics Co Ltd 207940.KS is qualified to continue trading on the exchange and that the company's shares will resume trading on Tuesday, the bourse said on Monday.
Trading in shares of the biotech drug arm of the parent group of tech giant Samsung Electronics Co 005930.KS 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.
“We concluded that there was no serious concern about the company’s continuity regarding its business outlook, order backlogs and order plans, as the company’s revenues and profitability were found to have improved,” the Korea Exchange said in a statement.
Samsung BioLogics said in a statement it would strengthen its internal control system and planned to prove the legitimacy of its accounting methods.
The company denied any wrongdoing following the financial watchdog’s ruling on accounting violations and filed an administrative lawsuit against it.
The regulator’s ruling was a blow to South Korea’s biggest conglomerate, which is banking on biopharmaceuticals for growth. It announced plans in August to invest $22 billion (17.3 billion pounds) in the business and in other areas such as artificial intelligence and 5G mobile technology.
Reporting by Choonsik Yoo and Yuna Park; Writing by Ju-min Park; Editing by Mark Potter
Our Standards: The Thomson Reuters Trust Principles.