• Home
  • Investors
  • IR Notice

IR Notice

General

CEO Letter to Shareholders

Samsung Biologics 

 

Dear Shareholders of Samsung Biologics:

 

On November 14, the Securities and Futures Commission (“SFC”) announced the final result of its audit on our accounting in respect of our associate, Samsung Bioepis (“Bioepis”).  In this regard, we will explain the progress of this issue and our position on the result of the measure taken by the SFC.

 

?Samsung Biologics (the “Company”) has been audited by the Financial Supervisory Service (“FSS”) since April 2017 as to whether the accounting was properly treated in the Company’s financial statements in respect of Bioepis, a joint venture between the Company and Biogen in the U.S., and the FSS disclosed the result of the audit to the media in early May.

?

After numerous meetings of the audit committee and the SFC, the SFC announced the following results of the measure on July 12, 2018: among the alleged accounting violations of the Company, (i) “gross negligence” for failure to record notes regarding call options granted to Biogen in respect of shares in Bioepis to the auditors’ report for 2012 and 2013; (ii) “willful misconduct” for insufficient record of notes to the auditors’ report for 2014; and (iii) order for re-audit by the FSS with respect to the discretionary evaluation of the investment in shares through an inappropriate change of the accounting standards for 2015.

?
In its announcement of the decision on re-audit on November 14, the SFC concluded that the Company’s treatment of Bioepis as a consolidated subsidiary as opposed to an associate under the equity method from 2012 to 2014, which was not deemed a violation in July, was to be deemed “negligence” for 2012 to 2013 and “gross negligence” for 2014.  It also announced that the Company’s unjust discretionary evaluation of investment in shares for 2015 and failure to retroactively apply the amended accounting standards to the financial statements after 2012 would be deemed “willful misconduct.”

? 

Accordingly, the following measures were taken against the Company: i) prosecution against the Company and its representative director; ii) recommendation of dismissal of the Company’s representative director (CEO) and the responsible officer (CFO); iii) compulsory designation of external auditors for 3 years; iv) an order of a corrective measure (retrospective restatement of financial statements); and v) imposition of an administrative fine worth KRW 8 billion for “willful misconduct.”

?
According to the KOSPI Listing Regulation, in case of any prosecution for violations of the accounting standards in the amount equal to or greater than 2.5% of the shareholders’ equity (for a large-scale corporation), a listing maintenance review event is triggered and such review must be conducted immediately after suspension of trading activities.  Therefore, the trading of the Company’s shares has been suspended since the SFC’s announcement on its resolution after market closing on November 14.

?
We deeply regret the findings of the SFC as we are confident that our accounting treatment has been proper under the K-IFRS.  As such, we filed an administrative lawsuit against the SFC on October 8 regarding the 1st audit result and another administrative lawsuit against the SFC on November 27 regarding the 2nd audit result. Through these lawsuits, the Company aims to have the legality of its accounting treatment recognized.  To prevent the administrative dispositions from taking effect, the Company applied for an order to stay the dispositions on restatement of financial statements, recommendation of dismissal of CEO and CFO, designation of external auditors for 3 years until the court renders a decision.  Furthermore, the Company is delivering its best efforts to cooperate with the listing maintenance review performed by the Korea Exchange so that trading will be resumed as soon as possible.

?
As a global contract manufacturing organization (“CMO”) that engages in business with top global bio-pharmaceutical companies, the Company prioritizes corporate ethics, compliance and credibility more than any other value.  With such values in mind, our employees have strived to make the Company the world’s best CMO since its incorporation in 2011.

?
We apologize for any inconvenience that you have suffered in exercising property rights as a result of the suspension of trading of shares due to the SFC’s unwillingness to recognize the Company’s transparency and legality.  Samsung Biologics is a company with very solid financials, its current cash reserve being more than 1 trillion KRW.  Therefore, it is unlikely that the issue at hand will impact our corporate values or daily business operations.  We will endeavor to raise shareholder value by providing quality service to our clients and continuing to expand our business.

 

November 30, 2018

 

Tae-Han Kim

 

Representative Director & CEO, Tae-Han Kim


 

Samsung Biologics

 

 

Dear Shareholders of Samsung Biologics:

 

On November 14, the Securities and Futures Commission (“SFC”) announced the final result of its audit on our accounting in respect of our associate, Samsung Bioepis (“Bioepis”).  In this regard, we will explain the progress of this issue and our position on the result of the measure taken by the SFC.


Samsung Biologics (the “Company”) has been audited by the Financial Supervisory Service (“FSS”) since April 2017 as to whether the accounting was properly treated in the Company’s financial statements in respect of Bioepis, a joint venture between the Company and Biogen in the U.S., and the FSS disclosed the result of the audit to the media in early May.


After numerous meetings of the audit committee and the SFC, the SFC announced the following results of the measure on July 12, 2018: among the alleged accounting violations of the Company, (i) “gross negligence” for failure to record notes regarding call options granted to Biogen in respect of shares in Bioepis to the auditors’ report for 2012 and 2013; (ii) “willful misconduct” for insufficient record of notes to the auditors’ report for 2014; and (iii) order for re-audit by the FSS with respect to the discretionary evaluation of the investment in shares through an inappropriate change of the accounting standards for 2015.


In its announcement of the decision on re-audit on November 14, the SFC concluded that the Company’s treatment of Bioepis as a consolidated subsidiary as opposed to an associate under the equity method from 2012 to 2014, which was not deemed a violation in July, was to be deemed “negligence” for 2012 to 2013 and “gross negligence” for 2014.  It also announced that the Company’s unjust discretionary evaluation of investment in shares for 2015 and failure to retroactively apply the amended accounting standards to the financial statements after 2012 would be deemed “willful misconduct.”

 

Accordingly, the following measures were taken against the Company: i) prosecution against the Company and its representative director; ii) recommendation of dismissal of the Company’s representative director (CEO) and the responsible officer (CFO); iii) compulsory designation of external auditors for 3 years; iv) an order of a corrective measure (retrospective restatement of financial statements); and v) imposition of an administrative fine worth KRW 8 billion for “willful misconduct.”


According to the KOSPI Listing Regulation, in case of any prosecution for violations of the accounting standards in the amount equal to or greater than 2.5% of the shareholders’ equity (for a large-scale corporation), a listing maintenance review event is triggered and such review must be conducted immediately after suspension of trading activities.  Therefore, the trading of the Company’s shares has been suspended since the SFC’s announcement on its resolution after market closing on November 14.


We deeply regret the findings of the SFC as we are confident that our accounting treatment has been proper under the K-IFRS.  As such, we filed an administrative lawsuit against the SFC on October 8 regarding the 1st audit result and another administrative lawsuit against the SFC on November 27 regarding the 2nd audit result. Through these lawsuits, the Company aims to have the legality of its accounting treatment recognized.  To prevent the administrative dispositions from taking effect, the Company applied for an order to stay the dispositions on restatement of financial statements, recommendation of dismissal of CEO and CFO, designation of external auditors for 3 years until the court renders a decision.  Furthermore, the Company is delivering its best efforts to cooperate with the listing maintenance review performed by the Korea Exchange so that trading will be resumed as soon as possible.


As a global contract manufacturing organization (“CMO”) that engages in business with top global bio-pharmaceutical companies, the Company prioritizes corporate ethics, compliance and credibility more than any other value.  With such values in mind, our employees have strived to make the Company the world’s best CMO since its incorporation in 2011.


We apologize for any inconvenience that you have suffered in exercising property rights as a result of the suspension of trading of shares due to the SFC’s unwillingness to recognize the Company’s transparency and legality.  Samsung Biologics is a company with very solid financials, its current cash reserve being more than 1 trillion KRW.  Therefore, it is unlikely that the issue at hand will impact our corporate values or daily business operations.  We will endeavor to raise shareholder value by providing quality service to our clients and continuing to expand our business.

 

November 30, 2018

 

Tae-Han Kim

 

Representative Director & CEO, Tae-Han Kim

Attached

SITE MAP

close
close

Samsung Biologics
Privacy Policy

초점받기 링크
Effective Date: [30Dec2019]

This Privacy Policy illustrates how Samsung Biologics ("we", “our”, “us”) use and protect information you provide through your use of this website (the "Website") or our customer inquiry and recruitment services (collectively the “Services”).

Please read this Privacy Policy carefully and feel free to contact us if you have any questions, using the contact information provided in the Contact Us section below.

Information we may collect from you
1.Customer Inquiry

When you fill out the “Contact Us Form” on our Website, we may collect the following types of information:

  • Customer Inquiry information include Category, Information we may collect from you.
    Category Information we may collect from you
    Contact Us Mandatory Name, E-mail Address, Company Name, Occupation, Country, Areas of Interest, Inquiries/Comments
    Optional Any additional information you provide including but not limited to the job title
    Customer Inquiry information include Category, Information we may collect from you.
    Category Information we may collect from you
    Contact Us Mandatory Name, E-mail Address, Company Name, Occupation, Country, Areas of Interest, Inquiries/Comments
    Optional Any additional information you provide including but not limited to the job title

    Access log and website usage information collected through cookies. For more information about how we use cookies on our Website, please see our Cookie Policy.

2.Recruitment

When you submit your application via “TalentPool” on our Website, we may collect the following types of information:

  • Recruitment infomation include Category, Information we may collect from you.
    Category Information we may collect from you
    Talent Pool Mandatory Name, E-mail Address, Country, Areas of Interest, Resume
    Optional Any additional information you provide including but not limited to personal profiles on SNS
    Application Form
    (in Korean)
    Mandatory Name, Date of Birth, Address, E-mail, Contact Number,
    Education History (Name of School, Major, Enrollment Year/Month, Graduation Year/Month, Location), Employment History (Employment Period, Company, Job Title, Job Scope, Major Task), Language, Miscellaneous (Military Status, Reason for Exemption, Veteran Status)
    Optional Any additional information you provide including but not limited to research career, special qualifications and licenses, personal profiles on SNS.
    Recruitment infomation include Category, Information we may collect from you.
    Category Information we may collect from you
    Talent Pool Mandatory Name, E-mail Address, Country, Areas of Interest, Resume
    Optional Any additional information you provide including but not limited to personal profiles on SNS
    Application Form
    (in Korean)
    Mandatory Name, Date of Birth, Address, E-mail, Contact Number,
    Education History (Name of School, Major, Enrollment Year/Month, Graduation Year/Month, Location), Employment History (Employment Period, Company, Job Title, Job Scope, Major Task), Language, Miscellaneous (Military Status, Reason for Exemption, Veteran Status)
    Optional Any additional information you provide including but not limited to research career, special qualifications and licenses, personal profiles on SNS.

*No sensitive information will be collected.

How we use your information
1.Customer Inquiry

We may use the information we collect from you to conduct certain services or activities such as replying to inquiries, maintaining business records, and conducting market research.

2.Recruitment

In order to proceed with recruitment process and communicate status/result of job application(s).

Sharing information with third parties

We will not disclose your information to third parties for their marketing or business purposes without your consent. However, notwithstanding the above, we may disclose your information to the following entities for recruitment purposes:

  • Educational institutions in your application.
    Your information (name, date of birth, major, admission year, graduation year, etc.) may be disclosed to educational institutions named in your application.
  • Previous companies you worked for and reference check vendors.
    Your information (i.e. name) may be disclosed to your previous workplaces and reference check vendors.
  • Service providers.
    We may disclose your information to companies that provide Services on our behalf. These entities cannot use your information for purposes other than providing Services on our behalf.
  • Other parties when required by law or as necessary to protect our rights.
    There may be instances where we disclose your information to other parties:
    • - to comply with legal obligations or legally binding disclosure orders (such as a search warrant or other court/regulatory order);
    • - to verify or ensure compliance with the terms and policies governing our Services; and
    • - to protect the rights, property, or safety of us or any of our business partners or customers.
  • Other parties in connection with corporate transactions.
    We may disclose your information to a third party as part of a merger or transfer, or in the event of a bankruptcy.
  • Other parties with your consent or at your direction.
    In addition to the disclosures described in this Privacy Policy, we may disclose information about you to third parties when you consent to or request such disclosure.
Your Rights

To the extent permitted under applicable law(s), you may ask us to return, destroy, or correct any inaccuracies regarding your personal information. You may also ask us to restrict or limit our use of your personal information unless such restriction or limitation prevents us from complying with applicable law(s) or meeting a legal obligation.

However, your rights above may be limited in cases where your request would disclose personal information of a third party or where such a request would infringe the rights of a third party (including our rights) or if you ask us to delete information which we are required by law to preserve or have legitimate interests in retaining. Other relevant exemptions may exist under the GDPR and national laws. We will inform you of the relevant exemptions when responding to your request. To make such a request concerning your rights set forth herein, please refer to the Contact Us section below.

International Transfer of Information

We are a company based in Korea, and your use of our Website and Services will involve the transfer, storage, and processing of your personal information in Korea. Please note that the information protection laws and other applicable laws of countries outside the European Economic Area (“EEA”), to which your information may be transferred, might not be as comprehensive as those in your country. We will take appropriate measures, in compliance with applicable law, to ensure that your personal information remains protected. Such measures include the use of EU Standard Contractual Clauses to safeguard the transfer of information outside of the EEA or other methods. For more information, please contact us at privacy.bio@samsung.com.

Data Retention

We will retain your personal information for a reasonable period of time that enables us to communicate with you, to provide you with Services, to maintain business records for audit purposes, to meet recordkeeping requirements under applicable law(s), to defend or bring any legal claims and to deal with any queries or complaints you may have.

Keeping Your Information Secure

We have put in place reasonable measures to safeguard the information we collect in connection with the Services. However, please note that although reasonable steps will be taken to protect your information, no website, internet transmission, computer system or wireless connection is 100% secure from any and all potential threats.

Personal Information – Children under the age of 13

The Services are designed for general audience and are not intended or directed to children.

For US Residents Only

In connection with the Services, we will not knowingly solicit or collect personal information from children under the age of 13. In the event we do collect such personal information inadvertently or unknowingly and we later learn about it, we will promptly delete such information. If you believe that children under the age of 13 may have provided personal information to us, please contact us using the Contact Us section of this Privacy Policy.

If You are an individual resident in the EU

We process your personal information on the legal grounds that the processing is :

  • Necessary for the performance of contractual obligation(s) between you and us, for example if we’re providing service(s) that you have requested;
  • Necessary for compliance with our legal obligations;
  • Necessary for our legitimate interests, such as preparing our communications to you and continuing to develop and improve our services; or
  • With your consent or at your direction.

If you do not provide certain information to us, we may, in some circumstances, be unable to comply with our obligations or provide you with the services that you request. We will inform you of the implications of not providing certain information.

As set forth in the “Your rights” section, you are entitled, in accordance with applicable law, to object to or request restriction of processing your personal information, and to request access to, correction of, or deletion of your personal information. When we use your information on the basis of your consent, you have the right to withdraw such a consent at any time. Any requests should be submitted in writing to the address listed below in the “Contact Us” section. You also have the right to file a complaint with data protection authorities.

Contact Us

If you have any questions about this Privacy Policy, please contact us using the details below.

- Contact : 032-455-9829

- Email : privacy.bio@samsung.com

Changes to this Privacy Policy

We may update this Privacy Policy from time to time. When we update the Privacy Policy, we will revise the “Effective Date” above and post the new Privacy Policy with a new date. We recommend that you review the Privacy Policy each time you visit our Website to stay informed of our most current practices and policies.

close

SECURITY REPORT

Your valuable comments contribute to protecting Samsung Biologic’s core technology and management information, as well as reinforcing domestic competency and economic development.

  • This page is created for reporting core technology and management information leakage.
  • The reported contents as well as the identity of the reporter are strictly secured.
THE MANUAL FOR SECURITY NOTIFICATION