MBK Kim Byeong-ju (Chairman) Absence from National Audit Sparks Controversy as All Eyes Turn to Direction of Homeplus Scandal Investigation

*This content was translated by AI.View Original

MBK Partners (MBK) Kim Byeong-ju (Chairman) is facing intense scrutiny daily from relevant National Assembly standing committees over the Homeplus scandal and controversy surrounding his absence from the National Audit.

The National Assembly Judiciary Committee and the Political Affairs Committee criticized the sluggish progress of the investigation into Homeplus executives, while the Ministry of Trade, Industry and Energy, and SMEs Committee and opposition parties condemned Kim (Chairman)'s refusal to appear, accusing him of disregarding the National Assembly.

Democratic Party of Korea lawmaker Lee Seong-yoon pointed out during the National Audit session before the Prosecution Service headquarters that "the investigation into the MBK case is excessively sluggish," and questioned the circumstances behind reports considering non-prosecution of Kim (Chairman). In response, Acting Prosecutor General Lee Jung-hyun (Deputy Prosecutor General) stated, "Given the significant public interest and damages amounting to 600 billion won, we will do our utmost to ensure strict case handling that meets the standards of the people." Regarding suspicions within the investigation team of rejecting a non-prosecution opinion, he said, "It is difficult to disclose specific details about the circumstances of the prosecution report, but we are currently exchanging opinions closely, and there is no significant gap at this time."

The core suspicion in this MBK case is that executives issued Asset-Backed Short-Term Bonds (ABSTB) despite predicting a decline in Homeplus's credit rating.

During the Political Affairs Committee National Audit, Democratic Party of Korea lawmaker Kim Hyeon-jung stated, "The amount of fraudulent issuance charges specified in the second fast-track request submitted by the Financial Supervisory Service to law enforcement authorities last December reaches as much as 1 trillion 890.3 billion won, and it also included content stating that short-term bond issuance was reported to Kim (Chairman) and carried out according to his instructions."

On the other hand, the amount of fraud charges in the arrest warrant dismissed by the court last January is limited to only 116.4 billion won, prompting criticism that it must be verified whether the Financial Supervisory Service's thorough investigation results were properly reflected in the prosecution. Furthermore, given that circumstances have emerged showing MBK had been considering the possibility of corporate rehabilitation since 2023, the correlation between the timing of preparation for rehabilitation proceedings and the process of short-term bond issuance is also a task that must be clarified.

Lee (Rep.) emphasized that the Homeplus scandal not only caused Yangsan to more than 400 direct financial victims, but is also a serious livelihood crisis involving the livelihoods of up to 100,000 people, including 20,000 directly employed workers and partner companies. He warned that it should not be dismissed as a simple financial case, given that the situation has expanded to include unpaid wages and non-payment of supply payments.

The Prosecution Service plans to make a final disposition of this case before December 30, which is the deadline for the suspension period of direct investigation authority for existing cases. In response, MBK stated, "ABSTB issuance was managed and sold by Shin Young Securities," and clarified its position that Kim (Chairman) did not instruct the issuance or have any involvement in Homeplus management.

Meanwhile, there are also criticisms from the political sphere regarding Kim (Chairman), who is evading National Assembly appearance requests. People Power Party lawmaker Woo Jae-jun strongly criticized Kim (Chairman)'s repeated absences through a procedural speech at the SME Committee National Audit and urged the resolution of a subpoena. Democratic Party of Korea Son Myeong-su (Spokesperson) pointed out in a written briefing, "They cited concerns about impact on the investigation during the first National Audit, but now they use non-involvement in management as an excuse," adding, "Adjusting distance from management only during crises to evade responsibility is behavior that disregards the National Assembly and insults the people."

The Democratic Party emphasized that it will not stand by idly while Kim (Chairman) repeatedly fails to appear, and will take necessary measures in accordance with laws and procedures stipulated in the National Assembly Act, and will continue to monitor the normalization of Homeplus until the end.

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*This content was translated by AI.View Original