Financial authorities have filed a complaint with the prosecution against Sambu Construction for manipulating stock prices using false information. At the same time, they have reported Homeplus and MBK Partners to the prosecution as an emergency measure for issuing short-term bonds while concealing their corporate rehabilitation plans.
The Securities and Futures Commission under the Financial Services Commission announced on April 23 that it held its 8th regular meeting and decided to file a complaint with the prosecution against the former and current de facto owners and the CEO of Sambu Construction on charges of violating the Capital Markets Act by engaging in unfair trading practices related to overseas reconstruction projects.
According to the Securities and Futures Commission, the former and current de facto owners and the CEO of Sambu Construction repeatedly entered into formal memorandums of understanding (MOUs) with overseas companies in May and June 2023, which lacked concrete content, with the aim of preventing forced sales of pledged shares and selling their holdings at high prices. After signing these MOUs, they distributed press releases that falsely or exaggeratedly promoted the agreements.
The Commission explained, "There are allegations that they created a false appearance as if they were actively pursuing overseas reconstruction projects, thereby deceiving investors, inflating the stock price, and then selling their holdings to earn hundreds of billions of won in unfair profits, constituting unfair trading practices."
In addition, on April 21, the management of Homeplus, which recently entered rehabilitation proceedings, and MBK Partners, the private equity fund (PEF) operator that acquired Homeplus, were reported to the prosecution through an emergency measure (fast track) by the chairman of the Securities and Futures Commission. Homeplus and MBK management are suspected of unfair trading for issuing short-term bonds (ABSTB) while concealing their plans to file for corporate rehabilitation, despite being aware in advance of a downgrade in their credit rating.
The Commission stated, "Financial authorities will actively cooperate with the prosecution's investigation to ensure that suspicions related to cases of high public interest are thoroughly clarified," and added, "For major unfair trading cases, we plan to concentrate our investigative capabilities and promptly file complaints or reports with the prosecution to establish order in the capital markets and ensure investor protection."
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