Mbk Sanctions Review, For Which Lee Chanjin Mentioned a "Swift Conclusion," Postponed to March

The financial authorities' decision on administrative sanctions against MBK Partners in connection with the so-called "Homeplus case" has been further delayed. This is because, after the first two rounds of deliberations ended without a conclusion and were put on hold, the schedule for the third deliberation has also been postponed.

The Financial Supervisory Service had planned to resume discussions related to MBK Partners at the Sanctions Review Committee on the afternoon of the 12th, but decided to push the matter back to next month due to scheduling and other reasons. Normally, the FSS Sanctions Review Committee is held on the first and third Thursday of every month.

At the committee meeting held on this day, only other major agenda items were discussed, including Hong Kong H-Index equity-linked securities (ELS) and matters related to Samsung Securities. An official from the FSS explained, "A large number of major items were submitted, and since the Sanctions Review Committee is being held only once this month due to the Lunar New Year holidays, discussions related to MBK Partners have been postponed to next month." Previously, at the sanctions reviews in December last year and last month, the FSS stated that "additional discussion is needed" and deferred reaching a conclusion on the level of sanctions against MBK Partners.

In this regard, on February 9, FSS Governor Lee Chanjin said at a regular press briefing, "During the inspection process, we are thoroughly investigating various suspicions raised by the media and others, including asset-backed short-term bonds (ABSTB), and we are currently submitting the findings on any legal violations and proposed measures to the FSS Sanctions Review Committee for deliberation." He added, "Because we must fully hear the opinions of MBK and the executives and employees subject to sanctions, and carefully and accurately review the relevant legal issues, the process is taking some time. However, we will strive to complete the deliberations as swiftly as possible."

Meanwhile, the Emergency Committee for Victims of Homeplus Merchandise Purchase Commercial Paper, in a statement released ahead of the sanctions review on this day, urged strong disciplinary action, declaring, "Any further delay in the MBK sanctions review is tantamount to declaring complicity," and stating, "This is not a matter where time can be allowed to pass under the name of 'careful discussion.' What is needed now is not further reflection but a decision."

The emergency committee pointed out that FSS sanctions reviews are normally finalized only after several rounds of discussion, followed by deliberations at the Securities and Futures Commission under the Financial Services Commission and then at the FSC's regular meeting, and criticized, "As a result, the sanctions become a remedy that comes too late, and the warning effect on the market effectively disappears." It also argued, "The MBK case involves overlapping issues: losses from securitized commercial paper, workers' wage problems, the risk of partner companies going bankrupt, and controversy over the distortion of rehabilitation proceedings," and called it "a serious criminal act that has disrupted financial order."