Prosecutors raid Samsung office in accounting scandal

SEOUL, Prosecutors raided a task force office of Samsung Electronics Co. on Thursday as part of an investigation into allegations that Samsung Group may have ordered accounting fraud by its biopharmaceutical unit.

The investigators were sent to the task force office in charge of business support work for chief executives and Samsung BioLogics to search accounting data and computer hard discs in connection with investigations into BioLogics' alleged fraudulent accounting.

Samsung BioLogics is alleged to have intentionally violated accounting rules to inflate the value of its subsidiary, Samsung Bioepis, ahead of BioLogics' 2016 initial public offering.

Investigators are looking into allegations that Samsung Group might have ordered alleged window-dressing by Samsung BioLogics and the destruction of related evidence.

Prosecutors reportedly raided the office of Chung Hyun-ho, a Samsung Electronics president in charge of the task force, and that of Kim Tae-han, Samsung BioLogics' chairman.

Earlier this month, investigators raided a Samsung BioLogics factory in Incheon, west of Seoul, on suspicions that accounting data that could prove the company's alleged fraud was concealed there.

Two Samsung Electronics executives were arrested last week on charges of attempting to destroy evidence related to the BioLogics case.

An arrested executive, identified only by his surname Baek, is believed to have testified that he received an order to do so from above.

Civic groups have claimed the alleged fraud was aimed at enhancing heir apparent Lee Jae-yong's control of Samsung Group.

Source: Yonhap news Agency

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