Samsung BioLogics on Friday denied growing speculations that it had received preferential treatment for its market debut in connection with Samsung Group allegedly lobbying President Park Geun-hye’s longtime friend Choi Soon-sil.

In a rare move, the biopharmaceutical unit of Samsung Group posted an announcement at its website that local reports stating that the Korea Exchange may had revised its stock market listing requirement in favor of the firm are “not true,” saying that its market entrance was carried out “legally.”


The announcement came after reports that the nation’s main bourse operator early this year may have cleared rules that qualify companies that report an operating profit of 3 billion won ($2.5 million) for market entrance. Reports also suggested that such changes may had been made to help Samsung BioLogics secure investment as its affiliate Samsung Bioepis decided to delay a separate listing on Nasdaq, pushing BioLogics to rush its market entrance. The “sudden” change of rules by the KRX may have been influenced by Park‘s friend, according to reports.

Samsung BioLogics, however, refuted reports that the firm was already eligible for a market debut in November last year and the decision had nothing to do with Samsung Bioepis’ postponement of a Nasdaq listing. Samsung Bioepis said in January, three months after the Kospi rule was revised, that it would not pursue a Nasdaq listing.

“Samsung Bioepis delayed its Nasdaq debut at the end of January and it had nothing to do with the company (BioLogics)’s plan to go public, but because of Nasdaq being depressed (at that time),” the company said in a statement.

“BioLogics was not the only company that went public even with operating losses,” it said stressing the nature of bio companies’ operations that require many years to invest for research and development. It exemplified Kangstem Biotech which entered Kosdaq in December 2014 with 4.5 billion won in operating losses under a special listing system that exempted the company from the requirement. BioLogics, a contract drug-making company has posted operating losses for the past three consecutive years.

On Tuesday, the KRX also denied the reports that the rules were changed as part of efforts to offer opportunities for those that have high growth potential.

Allowing unprofitable but promising companies to go public is common in the US, the KRX said citing Tesla which entered the Nasdaq with operating losses, but saw its market capitalization surge 20 times afterwards.

By Cho Chung-un (christory@heraldcorp.com)