Prosecutors have reportedly cleared Ilyang Pharmaceutical of charges that it violated accounting standards and obstructed an audit.
According to the legal community and the pharmaceutical industry on the 3rd, the Suwon District Prosecutors Office recently issued a decision of no charges or no right of prosecution for Ilyang Pharmaceutical. An Ilyang Pharmaceutical official said, "It was a conclusion reached a little over three months after the financial authorities notified prosecutors of the case."
Ilyang Pharmaceutical was suspected of inflating net profit and shareholders' equity by incorporating the Chinese joint ventures Tonghua Ilyang and Yangzhou Ilyang as subsidiaries. A probe by the financial authorities found that it obstructed the external audit by submitting forged documents to the auditor during the audit.
In Nov. last year, the Financial Services Commission imposed a 6.23 billion won penalty surcharge on Ilyang Pharmaceutical on charges including violating the Act on External Audit of Stock Companies, etc. Three people, including the CEO, were also fined a 1.26 billion won penalty surcharge. The Financial Services Commission notified prosecutors of the Ilyang Pharmaceutical corporation and the CEO, among others. It issued a recommendation for dismissal and a six-month suspension from duties, and resolved to designate an auditor for three years.