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Samsung's hopes for biotech arm hinge on fraud ruling

Lee Jae-yong faces another blow if unit is delisted

Samsung BioLogics insists it followed international accounting rules. (Photo courtesy of Samsung BioLogics)

SEOUL -- Samsung's long-term growth strategy will come under scrutiny on Wednesday when South Korean regulators review allegations of accounting fraud at the group's biotech arm, its vehicle for expansion beyond the mobile and semiconductor sectors.

Shares in Samsung BioLogics, the world's third-largest contract drugmaker by market share, have fallen 40% over the last month amid concerns that authorities could delist the company following an investigation into claims that it violated accounting rules three years ago.

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