MBK Kim Byung-joo, possibility of non-prosecution... "Is the Prosecution Service favoring giant capital?"

*This content was translated by AI.

Following reports that the Prosecution Service has tentatively concluded it will not prosecute the private equity fund MBK Partners Kim Byeong-ju (Chairman) in connection with its investigation into Homeplus's issuance of short-term corporate bonds and its application for corporate reorganization, criticism has been mounting from various sectors.

According to political sources, Democratic Party of Korea lawmaker Kim Hyun-jeong posted on Facebook on the 23rd, stating, "If the Prosecution Service is considering non-prosecution, it must clearly disclose the grounds." She further noted, "Even as we approach a reform of the criminal justice system, if the case is concluded without thorough investigation into core allegations and without a convincing explanation, it will amount to self-proof of why the Prosecution Service's investigative authority should be abolished."

Kim (Rep.) asked, "When did MBK's management become aware of the risk of Homeplus's credit rating downgrade? When did preparations for reorganization begin? To what extent has the allegation of deceiving credit rating agencies been clarified?" He added, "What information did Kim Byeong-ju (Chairman) receive, and how did it participate in decision-making? What evidence did the Prosecution Service gather and verify to confirm this? Can these questions be answered clearly?"

People Power Party lawmaker Kim Sang-hoon also posted on Facebook on the same day, saying, "Victims are losing their workplaces and livelihoods, yet the head of a giant private equity fund walks away with an easy pardon. Which citizen could accept such reality?" He urged, "The government must immediately establish a relief plan for Homeplus victims, and the Prosecution Service must immediately halt investigations that favor giant capital."

Ha Tae-kyung, former People Power Party lawmaker and current President of the Insurance Association in Suwon, also criticized via social media on the same day. It is reported that he said, "MBK under Kim (Chairman) issued bonds while knowing Homeplus would default, thereby deceiving bondholders through fraud." He added, "The Prosecution Service agrees that MBK committed fraud. Yet the mastermind Kim Byung-joo is innocent? What kind of logic is this?"

President Ha further stated, "Not only did they ruin Homeplus's management, but they also committed fraud. If the mastermind bears no responsibility, how can anyone understand who actually committed fraud?" He questioned, "To whom should those countless fraud victims hold accountable?" He continued, "The Prosecution Service is lenient toward capitalists controlling trillions of won," and argued, "It acts as an unjust representative that ignores victims' suffering while granting pardons to powerful and wealthy authorities."

The Homeplus branch of the Mart Industry Labor Union under the Service Federation of the Korean Confederation of Trade Unions also issued a statement, strongly condemning the Prosecution Service's behavior for failing to hold anyone accountable in the face of giant private equity funds and capital power. It is reported that the union stated, "The Prosecution Service's decision not to prosecute does not erase MBK and Kim Byeong-ju (Chairman)'s social and economic responsibilities."

The Democratic Party of Korea Euljiro Committee also issued a statement expressing concern. The committee asked, "What has changed between when an arrest warrant was sought against Kim Byeong-ju (Chairman) in the past and now? What evidence was excluded? What legal reasoning shifted to make it difficult to hold Kim Byeong-ju (Chairman) criminally responsible?" It urged transparent explanation of the investigation results and grounds for judgment.

It further emphasized, "Just because Homeplus has entered the path of reorganization does not mean past responsibilities disappear." The committee stressed that during this year's national audit, it would closely examine the Prosecution Service's investigative and disposition processes, the responsibility of major shareholders in Homeplus's short-term bond issuance and reorganization application, and institutional measures to prevent private equity fund major shareholders from evading responsibility.

Previously, some media outlets reported that the Anti-Corruption Investigation Division 2 of Seoul Central District Prosecutors' Office had tentatively concluded that MBK Kim Byeong-ju (Chairman) should be excluded from prosecution targets and had reported the related investigation results to the Supreme Prosecutors' Office.

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*This content was translated by AI.