*This content was translated by AI.
The Prosecution Service summoned MBK Partners Chairman Kim Byung-joo as a suspect in connection with the "Homeplus crisis," marking a turning point in the investigation into MBK's top leadership.
This was the first face-to-face investigation conducted after the court rejected arrest warrants for Kim (Chairman) and three other executives last January, followed by a restructuring of the investigative team. With the Prosecution Service now believed to be entering the final stages of its probe, attention is focused on whether Kim (Chairman) and Kim Kwang-il, MBK Vice Chairman and co-CEO of Homeplus, will face formal charges.
On the 10th, the Prosecution Service summoned major shareholder MBK Partners' Kim Byeong-ju (Chairman) in connection with the "Homeplus crisis." The Anti-Corruption Investigation Division 2 of Seoul Central District Prosecutors' Office began questioning Kim (Chairman) as a suspect under charges including fraud under the Act on Aggravated Punishment of Specific Economic Crimes and violations of the Capital Markets Act.
Kim (Chairman) is suspected of issuing large-scale short-term asset-backed securities (ABSTB) despite anticipating Homeplus's credit rating downgrade, then abruptly filing for corporate rehabilitation, thereby causing losses to investors. MBK executives, as major shareholders of Homeplus, are under suspicion of predicting the credit rating decline in February last year yet still issuing bonds totaling 116.4 billion won, including ABSTB.
The Prosecution Service, which launched its investigation in April last year, requested arrest warrants for four executives—Kim (Chairman), Vice Chairman Kim Kwang-il (Homeplus co-CEO), Executive Vice President Kim Jeong-hwan, and Lee Seong-jin (EVP)—in January. However, the court rejected all requests, stating there was insufficient evidence to justify detention.
Subsequently, Seoul Central District Prosecutors' Office reassigned the case from Anti-Corruption Investigation Division 3 to Anti-Corruption Investigation Division 2, vowing to reevaluate the matter with an objective perspective. This marked the first summons of Kim (Chairman) following the reassignment.
It is reported that the Prosecution Service discovered instances of deceptive practices during Homeplus's issuance of short-term notes aimed at raising emergency funds amid deteriorating business conditions. A decision on whether to formally charge Kim (Chairman) and others is expected soon.
Some legal experts predict that, given the prior rejection of an arrest warrant, authorities may opt not to seek custody again but instead transfer the case for trial without detention. Attention is also focused on how Kim Kwang-il, who serves as Homeplus's CEO and MBK Vice Chairman, will be handled. With the planned abolition of the Prosecution Service set for October 2, there are expectations that the agency will accelerate its handling of the case before its dissolution.
The political sphere is also closely monitoring the investigation into MBK. Min Byeong-deok, Senior Deputy Chairperson of Policy Coordination at the Democratic Party of Korea, emphasized: "The Prosecution Service must thoroughly investigate the allegations raised during Homeplus's credit crisis, short-term note issuance, and rehabilitation application process. It must swiftly and rigorously investigate Kim Byeong-ju (Chairman) and related parties and impose appropriate measures in accordance with law and principle."
On the 2nd, Seoul Bankruptcy Court approved Homeplus's restructuring plan.
However, he stated, "Saving Homeplus and holding MBK accountable are clearly separate matters. MBK must bear its own responsibilities." He added, "Now that Kim Byeong-ju (Chairman) is finally being summoned, the Prosecution Service must be fully prepared. We will watch closely to ensure this investigation does not amount to a mere formality for victims and citizens."
Some observers note that public opinion against MBK has worsened following the Homeplus crisis, which came after the management rights dispute at Korea Zinc that began two years ago. On September 13, 2024, MBK, in alliance with Yeungpoong, initiated a public tender offer for Korea Zinc shares. Analysts suggest growing fatigue among shareholders due to ongoing confrontations over shareholder meeting votes and legal actions such as injunctions and lawsuits between the MBK-Yeungpoong side and the Korea Zinc side.
Negative perceptions of MBK surrounding the Homeplus crisis were also reflected in voting outcomes. At Korea Zinc's extraordinary general meeting held on the 9th, Choo Yun-beom's Ko Ryeo-a-yeon (Chairman) faction received overwhelming support from foreign investors, institutional investors, and domestic individual shareholders. Baek In-gyu, a candidate recommended by the Korea Zinc side, was elected as an auditor with 81.8% approval of voting rights present.
The Choi Yun-beom (Chairman) faction secured three additional seats (one auditor and two independent directors) at this extraordinary general meeting. As a result, the expanded Korea Zinc board of directors, now totaling 19 members, adopted a structure where the Choi (Chairman) faction holds 12 seats compared to 7 for Yeungpoong and MBK, maintaining the advantage of the Choi (Chairman) side.
The decision on whether to formally charge Kim Byeong-ju (Chairman) and the progress of the investigation are expected to significantly influence the ongoing management rights dispute at Korea Zinc.
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*This content was translated by AI.
