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