• Jennifer Jae-Young Kim Korea University
  • Jaeyon Chu Hannam University
  • Kyongsun Heo
  • Jinhan Pae



Samsung BioLogics recognized a big valuation gain when it lost control over a biosimilar joint venture. The investment community expressed concerns about the revaluation gain because the loss of control of the joint venture was attributable to potential voting rights held by the joint venture partner and Samsung BioLogics had incentives to present higher profitability prior to IPO. We suggest the following: (1) timely and full disclosure of the potential voting rights; (2) extensive disclosure about the fair value estimate; (3) a conservative recognition of valuation gains; and (4) a periodic assessment of potential impairment of fair value estimates.

Author Biographies

Jennifer Jae-Young Kim, Korea University

Ph.D., a researcher at the Institute for Business Research & Education at the Business School of Korea University

Jaeyon Chu, Hannam University

Assistant professor of accounting at Hannam University.

Kyongsun Heo

Assistant professor of accounting at Kangnam University

Jinhan Pae

Professor of accounting at Korea University