Homeplus Crisis, Prolonged MBK Investigation Under Scrutiny... Calls for Accountability at the National Assembly

*This content was translated by AI.View Original

The investigation into MBK Partners executives over the Homeplus crisis has emerged as a major issue in the National Assembly's national audit. The members of the National Assembly questioned whether the results of the investigation handed over by the Financial Supervisory Service to the Prosecution Service were sufficiently reflected in the ongoing probe, and urged for the protection of victims and the clarification of the controlling shareholder's responsibility.

Democratic Party of Korea lawmaker Lee Seong-yoon pointed out on the 19th that the investigation into the Homeplus incident has been prolonged, during a National Assembly Legislation and Judiciary Committee national audit of prosecution offices in the metropolitan area. Lee (Rep.) emphasized that more than 400 victims of electronic short-term commercial paper (전단채) have emerged, and that if approximately 20,000 directly employed Homeplus workers and employees of partner companies are included, the livelihoods of up to 100,000 people are at stake.

Lee (Rep.) inquired about the results of the investigation, which had been conducted for approximately one year and six months since the Financial Supervisory Service referred the case to the Prosecution Service last April. In particular, he raised concerns about the circumstances surrounding the transfer of the case from the Anti-Corruption Investigation Division 3 to Division 2 and the replacement of the lead prosecutor.

Questions also continued regarding recent media reports that the investigation team had internally reviewed a plan to indict Kim Byung-ju, chairman of MBK Partners, but reported a recommendation for non-indictment to the Supreme Prosecutors' Office, after which the Supreme Prosecutors' Office rejected that recommendation.

In response, Park Cheol-woo of the Seoul Central Ji Bang-gong-so (Commissioner) stated that the opinions of the investigation team and institutional investor are in agreement, and answered to the effect that he suspects there is a mastermind behind reports suggesting internal disagreements.

Issues surrounding the scope of the investigation and the amount of alleged misconduct were also raised during the National Assembly Political Affairs Committee’s national audit of the Financial Supervisory Service on the same day. According to Democratic Party of Korea lawmaker Kim Hyeon-jung, the Financial Supervisory Service referred the case to the Prosecution Service as a fast-track matter twice, in April and December 2025. In particular, it is known that the second referral request stated that the amount involved in the alleged fraudulent issuance of Homeplus short-term bonds issued after March 2024 was 1.8903 trillion won. The document also reportedly noted that the bond issuance had been reported to Kim Byeong-ju (Chairman) and carried out under his instructions.

By contrast, the amount of fraud alleged in the arrest warrant that the Prosecution Service filed against four individuals, including Kim (Chairman), in January was 116.4 billion won. This figure relates to short-term bonds issued by Homeplus between February 17 and 25, 2025, just before the company received a notice of an impending credit rating downgrade.

Kim (Rep.) pointed out that there is a discrepancy between the scope of allegations reflected in the investigation results of the Financial Supervisory Service and those in the Prosecution Service's investigation, emphasizing the need to verify whether the related suspicions have been sufficiently clarified.

Suspicions regarding a pre-planned restructuring process were also raised again. Kim (Rep.) mentioned the fact that Lee Bok-hyun, then head of the Financial Supervisory Service, announced that he had secured specific evidence showing that MBK had been planning to file for restructuring for a considerable period prior to April 2025, and had passed this evidence to the Prosecution Service. Additionally, Kim (Rep.) pointed out that MBK acknowledged having sought external advice on the suitability of a major retail company for restructuring proceedings in 2023.

Kim (Rep.) argued that, given the significant harm suffered by multiple stakeholders—including workers, tenant businesses, and promissory note investors—the related allegations must be thoroughly investigated. He particularly emphasized that if it is confirmed that the company had been planning its restructuring since 2023 while issuing promissory notes starting in 2024, this could constitute a serious violation of the law.

Meanwhile, attention is also focused on whether Kim Byeong-ju (Chairman) will appear for the National Assembly's inspection. The National Assembly's Committee on Industry, Trade, Energy, Small and Medium Enterprises, and Venture Companies has re-designated Kim (Chairman) as a witness for the comprehensive national inspection of the Ministry of SMEs and Startups to be held on the 23rd.

This witness selection is a measure to verify the damages suffered by tenant merchants and suppliers during Homeplus' corporate rehabilitation process, as well as the responsibility of its major shareholder. Kim (Chairman) had previously been selected as a witness for the Ministry of SMEs and Startups' National Assembly audit held on the 7th, but submitted a statement of reasons for non-attendance and did not appear.

As questions continue to be raised in the National Assembly regarding the circumstances of the investigation, the scope of the allegations, victim relief, and the responsibility of major shareholders, attention is turning to whether Kim (Chairman) will appear at the parliamentary audit on the 23rd to state their position on the related suspicions.

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*This content was translated by AI.View Original