'Homeplus Scandal' MBK Chairman Kim Byungjoo Faces Detention Decision... Remains Silent on "Admission of Charges"

Accusations of Concealing Homeplus’s Financial Crisis
Decision Could Come as Early as Tonight

The detention hearing for Kim Byungjoo, Chairman of MBK Partners, and other executives accused of concealing Homeplus's financial crisis and shifting losses onto general investors began on January 13. The decision on whether to detain them is expected as early as tonight.

Regarding the Homeplus incident, Kim Byungjoo, Chairman of MBK Partners, who is accused of fraud involving approximately 100 billion won, is attending the pre-trial detention hearing at the Seoul Central District Court in Seocho-gu, Seoul on January 13, 2026. Photo by Jo Yongjun

Park Jungho, the presiding judge in charge of warrants at the Seoul Central District Court, started the pre-trial detention hearing at 10 a.m. for four individuals: Chairman Kim, Vice Chairman and Homeplus Co-CEO Kim Kwangil, Vice President Kim Junghwan, and Managing Director Lee Sungjin. They are under suspicion of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Capital Markets Act. The court is currently reviewing the necessity of their detention for investigation.

Chairman Kim appeared at the court building around 9:40 a.m. that day but entered the building without answering reporters' questions regarding whether he acknowledges the allegations or accepts personal responsibility.

The Anti-Corruption Division 3 of the Seoul Central District Prosecutors' Office (acting head prosecutor Kim Bongjin) applied for arrest warrants on January 7, believing that Homeplus issued large-scale Asset-Backed Short-Term Bonds (ABSTB) despite anticipating a downgrade in its credit rating. Prosecutors allege that MBK Partners' management subsequently filed for corporate rehabilitation abruptly, causing losses to investors.

Key issues are expected to include whether MBK was aware of the potential investor losses resulting from Homeplus's credit rating downgrade and corporate rehabilitation, and whether Chairman Kim was involved in issuing ABSTB despite knowing repayment would be impossible.