The Fair Trade Commission said Tuesday that it has levied Celltrion Holdings fines of 270 million won ($236,000) for breaching the law on holding firms that own subsidiaries.
Celltrion Holdings ― whose flagship unit is biopharmaceutical firm Celltrion Inc. ― violated the law which bans a holding company from reaching a debt-to-equity ratio above 200 percent, said the FTC.
According to the antitrust regulator, Celltrion Holdings posted a 217.7 percent ratio of debt to equity at the end of 2011.
The law on the ceiling of 200 percent is aimed at preventing a holding firm from excessively increasing the number of subsidiaries by applying for huge loans.
While the FTC has ordered the holding firm to correct its financial status, Celltrion Holdings argued that it is unnecessary to reduce the ratio under the new accounting rules.
The company claimed that its debt-to-equity ratio stayed at only 63 percent at the end of 2011 when the figure was calculated, based on the International Financial Reporting Standards.
Under the IFRS, the ratio stood at 91 percent at the end of 2012, Celltrion Holdings added.
By Kim Yon-se (
kys@heraldcorp.com)
