Samsung Electronics Vice Chairman Lee Jae-yong appears to have been involved in the alleged accounting fraud at the tech giant's biopharmaceutical affiliate Samsung BioLogics. 

Prosecutors have been looking into allegations that Samsung BioLogics intentionally broke accounting rules to inflate the value of its subsidiary, Samsung Bioepis, ahead of BioLogics’ initial public offering in 2016. 

The then-bleeding Samsung BioLogics reported sudden profits in 2015 after it changed the method used to calculate the valuation of its stake in Samsung Bioepis, a joint venture with U.S-based Biogen. 

KBS learned that Lee had discussed the issue of call options of Samsung Bioepis with the chief of Biogen in phone conversations. 

Prosecutors recently found a concealed company server of Samsung BioLogics and confirmed the discussion while recovering about 21-hundred computer files deleted by Bioepis employees in May of last year. 

Samsung said that Lee had never discussed the call option issue with Biogen, saying he just discussed general issues of the bio industry.