'Homeplus Scandal' MBK Chairman Kim Byungju Faces Arrest Decision on the 13th

Charges Include Violations of the Capital Markets Act
Warrant Review for Chairman Kim and Three Other Executives

The decision on whether to arrest Kim Byungju, Chairman of MBK Partners, who is accused of concealing Homeplus's financial crisis and shifting losses onto general investors, could be made as early as January 13.

Kim Byungju, Chairman of MBK Partners, listens to questions from lawmakers during the National Assembly's Political Affairs Committee audit on the Fair Trade Commission and the Personal Information Protection Commission held on October 14, 2025. Photo by Kim Hyunmin

According to the Seoul Central District Court on January 8, Judge Park Jungho, who is in charge of warrants, will conduct a substantive warrant review for four individuals at 1:30 p.m. on January 13: Chairman Kim, Vice Chairman and Co-CEO of Homeplus Kim Kwangil, Vice President Kim Junghwan, and Executive Director Lee Sungjin.

Previously, on the day before, the Third Anti-Corruption Investigation Division of the Seoul Central District Prosecutors' Office (headed by Acting Chief Prosecutor Kim Bongjin) requested arrest warrants for Chairman Kim and others on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Capital Markets Act.

They are accused of issuing a large amount of Asset-Backed Short-Term Bonds (ABSTB) despite anticipating a downgrade in Homeplus's credit rating, and then abruptly filing for corporate rehabilitation, causing losses to investors.

Korea Investors Service downgraded Homeplus's credit rating from 'A3' to 'A3-' on February 28 last year. On March 4, Homeplus filed for corporate rehabilitation (court receivership) with the Seoul Bankruptcy Court.

On December 8, prosecutors summoned Chairman Kim as a suspect and questioned whether MBK was aware of the impending credit downgrade of Homeplus in advance, whether there had been any reports or approvals regarding the issuance of short-term bonds, and whether they anticipated investor losses.

The decision on whether to arrest these individuals is expected to be made as early as the afternoon of January 13.