Anchor: Prosecutors raided the main offices of Samsung BioLogics and its accounting firms on Thursday as part of a probe into alleged accounting fraud. It's not yet clear whether the probe will expand into the controversial 2015 merger of two affiliates of Samsung Group, which was seen as a step to cement the conglomerate’s heir apparent Lee Jae-yong’s control. 
Our Lee Bo-kyung has this story.

Report: Prosecutors and investigators searched the accounting division of biopharmaceutical company Samsung BioLogics in Incheon Thursday in an effort to confiscate evidence.

Separate raids were carried out at Samsung Bioepis, Samsung C&T and four accounting firms, including KPMG Samjong Accounting and Deloitte Anjin LLC.

The raids come about a month after the Financial Services Commission ruled Samsung BioLogics intentionally violated accounting rules ahead of its initial public offering in 2016. 

Samsung Biologics is suspected of inflating the value of its core affiliate Samsung Bioepis from 300 billion won to four-point-eight trillion won by switching methods of calculating the value. 

After the change, Samsung BioLogics reported a sudden net profit of one-point-nine trillion won in 2015 following years of losses. 

The alleged irregularities reportedly helped boost the value of Cheil Industries and benefited Samsung Group's heir apparent, Lee Jae-yong, as Cheil Industries held a 46-point-three percent stake in Samsung BioLogics and Lee was a major stakeholder in Cheil at the time. 

Market watchers and activists suspect the alleged accounting irregularities are related to the controversial 2015 merger of Cheil and Samsung C&T.

The merger between the conglomerate’s de-facto holding company Cheil and construction and trading arm Samsung C&T is believed to have solidified Lee’s grip on the group’s crown jewel, Samsung Electronics, even though he holds a less than one percent stake in the global tech giant. 

The prosecution plans to closely investigate the alleged accounting fraud in Samsung BioLogics and look into the decision-making process during the changes in the accounting criteria for Samsung Bioepis.
Lee Bo-kyung, KBS World Radio News.