[Featured Stock] Celltrion Trio Plummets on FSC's Agenda to Discuss Accounting Fraud Case

[Asia Economy Reporter Ji Yeon-jin] As reports emerge that the Securities and Futures Commission (SFC) under the Financial Services Commission will begin discussions on allegations of accounting fraud by Celltrion, the stock prices of Celltrion affiliates have plummeted for two consecutive trading days.

As of 10:16 a.m. on the 17th, Celltrion is trading at 162,500 KRW on the Korea Exchange, down 4.97% (8,500 KRW) from the previous day. At the same time, Celltrion Healthcare and Celltrion Pharm fell 5.80% and 6.87%, respectively, on the KOSDAQ market.

These stocks also closed down more than 12% on the 14th. The sharp decline came after news that the SFC plans to place the Celltrion accounting fraud case on the agenda on the 19th.

Earlier, the Audit Committee under the Financial Services Commission reportedly discussed the results of the Financial Supervisory Service’s audit (accounting investigation) of the three Celltrion companies (Celltrion, Celltrion Healthcare, Celltrion Pharm) from 2010 to 2020, and plans to submit the matter as an agenda item at the regular SFC meeting on the 19th. It is known that the Financial Supervisory Service recommended to the SFC that Celltrion’s management be reported to the prosecution.

However, the Financial Supervisory Service clarified regarding these reports, stating, "The Audit Committee procedures on the related matter are currently ongoing, and some parts of the articles are inaccurate. No decisions have been finalized regarding any measures or actions."

The final measures against Celltrion will be confirmed after the Audit Committee’s review, followed by resolutions from the Securities and Futures Commission and the Financial Services Commission. In the case of Samsung Biologics, it took about five months from the Financial Supervisory Service’s conclusion to the final resolutions by the SFC and the Financial Services Commission.