South Korea's financial regulator has suspended stock trading of Samsung BioLogics, accusing the company of committing accounting fraud to inflate its value.

Kim Yong-beom, chairman of the Securities and Futures Commission, announced a ruling on Wednesday that the company breached accounting rules in 2015. The commission said it will refer the case to the prosecution and advise the company to fire executives involved in the fraud and designate an auditor.  

Kim said the company omitted important changes in accounting methods when describing its relation with its affiliate, Samsung Bioepis, as part of suspected efforts to increase both companies’ values.  

Samsung BioLogics denied any wrongdoing in a statement later in the day, calling the commission’s decision “regrettable." It said it will file an administrative lawsuit to prove the legality of its actions.