The prosecution has launched a compulsory investigation into Kim Byungju, chairman of MBK Partners. Prosecutors are investigating suspicions that Homeplus issued a large amount of short-term bonds despite anticipating a downgrade in its credit rating.
The Third Anti-Corruption Investigation Division of the Seoul Central District Prosecutors' Office (headed by prosecutor Lee Seunghak) executed a search and seizure warrant on Kim at Incheon International Airport on the afternoon of the 17th, following his return from London, United Kingdom.
Previously, the management of Homeplus and MBK Partners were accused of causing losses to investors by issuing and selling asset-backed short-term bonds (ABSTB) while a credit rating downgrade was anticipated.
At the end of last month, the prosecution conducted search and seizure operations at the offices of MBK Partners, the Homeplus headquarters, and the residences of related individuals. On the 12th, they also carried out compulsory investigations at Korea Investors Service (KIS) and NICE Investors Service, both credit rating agencies, and seized materials related to credit evaluations.
Additionally, on the 13th, the prosecution summoned Jung Wonhui, head of the Compliance Management Division who explained the corporate rehabilitation procedure and the deadline for submitting the Homeplus rehabilitation plan, as a reference witness. On the following day, the 14th, they summoned Kim Hyungseok, head of the Corporate Evaluation Division at KIS, also as a reference witness.
Prosecutors are expected to soon summon Chairman Kim, Kim Kwangil, vice chairman of MBK and co-CEO of Homeplus, and Cho Jooyeon, CEO of Homeplus, for questioning.
Previously, Shin Young Securities, which issued the Homeplus card payment ABSTB, and Hana Securities, Eugene Investment & Securities, and Hyundai Motor Securities, which sold these securities, filed complaints with the prosecution against Homeplus, Cho Jooyeon (co-CEO of Homeplus), other Homeplus executives, and Kim Kwangil, vice chairman of MBK Partners.
The Securities and Futures Commission under the Financial Services Commission has also reported the so-called "Homeplus incident" to the prosecution as an emergency measure (fast track).
The Financial Supervisory Service has determined that there are suspicions of fraudulent and unfair transactions by Homeplus and MBK Partners. The agency plans to actively cooperate with the prosecution's investigation, as well as pursue its own inspections of MBK Partners and audits of Homeplus's accounting, in order to uncover the facts.
On the 7th, in front of the Seoul Central District Prosecutors' Office in Seocho-gu, Seoul, Ahn Suyong, head of the Homeplus branch of the Mart Union, urged a thorough investigation into the Homeplus incident and the immediate summons of MBK chairman Kim Byungju at a press conference hosted by the Joint Countermeasures Committee for resolving the Homeplus situation. Photo by Yonhap News
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