As the deadline for Homeplus's restructuring approaches, the Prosecution Service, Financial Supervisory Service, and political circles are intensifying pressure on MBK from all sides.

*This content was translated by AI.

Pressure on MBK Partners is spreading as the deadline for the vote on Homeplus's restructuring plan nears. The Prosecution Service has resumed its investigation, the Financial Supervisory Service has officially begun sanction procedures, and demands for a National Assembly hearing have also been raised.

According to legal circles, the Anti-Corruption Investigation Department of the Seoul Central District Prosecutors' Office is reportedly resuming investigations into suspects regarding allegations of fraud and violations of the Capital Markets Act in the process of issuing Homeplus commercial paper (CP) and short-term electronic bonds. Recently, an executive in charge of Homeplus's finance, identified as Mr. A, was summoned as a suspect for questioning, and it is expected that MBK executives will be summoned in due course.

The Prosecution Service is reportedly of the view that MBK executives, Homeplus's major shareholders, issued large-scale short-term bonds while aware of the possibility of Homeplus's credit rating downgrade, then suddenly filed for corporate restructuring, causing losses to investors.

In this regard, the Prosecution Service conducted searches and seizures at the residences of Homeplus headquarters, MBK headquarters, MBK Chairman Kim Byung-joo, Vice Chairman Kim Kwang-il and Homeplus co-representative, and Homeplus Representative Cho Ju-yeon in April last year. Subsequently, in December last year, Mr. Kim and Vice Chairman Kim were summoned as suspects for questioning.

However, with the arrest warrant for MBK Chairman Kim Byung-joo and others rejected by the court earlier this year, the Prosecution Service's investigation had been stalled for some time, but it has recently gained momentum again.

The Financial Supervisory Service is also expected to hold a sanctions review committee next month to determine the level of sanctions against MBK for irregular business practices and violations of internal control obligations.

In this regard, Financial Supervisory Service Chief Lee Chan-jin stated at a regular press briefing on the 22nd, "The MBK sanctions review is scheduled for early July. It may be decided then, or it could be conducted once more in the short term." He further explained, "The delay in the review was due to legal considerations and the need to examine various interpretative possibilities. However, given the issues related to the restructuring process, we do not believe there is a situation that would warrant further delaying the decision."

Previously, it was reported that the Financial Supervisory Service had notified MBK in advance of severe sanctions last November, including suspension of duties. Suspension of duties is a severe sanction equivalent to a business suspension for general asset management companies, and this marks the first time such severe sanctions have been pursued against private equity fund (PEF) management companies (GPs). The advance notice reportedly also included sanctions beyond reprimands for key executives.

The focus on the Prosecution Service's investigation and the Financial Supervisory Service's sanctions coincides with the court's decision next month on whether to approve Homeplus's restructuring plan. Depending on the court's judgment, not only whether Homeplus will be restructured but also the possibility of extension or liquidation will be determined.

Pressure on MBK is also spreading to the political sphere. The Emergency Response Committee for Victims of Homeplus's short-term electronic bonds (ABSTB) recently held a press conference in front of MBK Partners headquarters, calling on MBK Chairman Kim Byung-joo to personally contribute funds and inject responsible capital, while also demanding a National Assembly hearing on Homeplus.

The emergency committee argued, "The Homeplus restructuring plan must include relief measures for victims of short-term bonds, and the cash flow of restructuring funds, including proceeds from Express's sale and emergency operating funds (DIP), must be disclosed. The National Assembly must also hold a hearing on the Homeplus crisis as soon as possible."

Previously, Democratic Party of Korea lawmaker Park Hong-bae appeared on the independent media Newstapa's YouTube broadcast "Newstapa Live" on the 23rd, stating, "The Prosecution Service must swiftly investigate Mr. Kim's various allegations." Progressive Party Standing Representative Kim Jae-yeon also launched an indefinite hunger strike, urging the government to actively mediate for the normalization of Homeplus.

As voices demanding clarification of the Homeplus crisis and accountability of major shareholders grow within the political sphere, there is also a possibility that a National Assembly hearing will be pursued.

With growing concerns about the possibility of bankruptcy ahead of the court's approval of the restructuring plan, major shareholder MBK has been engaged in a month-long dispute with Meritz Financial Group, Homeplus's largest creditor, over DIP loan issues, further fueling arguments about major shareholder responsibility. According to media reports, in several closed-door meetings chaired by the Democratic Party of Korea's Euljiro Committee, Vice Chairman Kim Kwang-il reportedly repeatedly stated that "there is no more capital to inject."

Choi Cheol-han, secretary-general of the Mart Union Homeplus Branch, stated, "It is necessary to clearly verify whether some of Vice Chairman Kim Kwang-il's high-end vehicles are registered under corporate names. Verification of the purpose of use and actual users is also required." This claim is based on the fact that Vice Chairman Kim Kwang-il's ownership of numerous high-end supercars, including Ferraris valued from hundreds of millions to billions of won, was revealed in the National Assembly, drawing public scrutiny.

MBK responded to this by stating, "The National Tax Service investigation targeted corporate vehicles. Since Vice Chairman Kim's vehicles are personally owned, they are entirely unrelated to this investigation."

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*This content was translated by AI.