Prosecutors Conduct Search and Seizure of Lotte Card... 'Homeplus Short-term Bond Incident'

[Financial News]  Prosecutors investigating the 'Homeplus short-term bond incident' have launched a forced investigation into Lotte Card on the 14th.
According to the legal community, the Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Seung-hak) conducted a search and seizure of the Lotte Card headquarters in Jung-gu, Seoul, on the same day over allegations of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and the Capital Markets Act.
Prosecutors suspect that major retailers Homeplus and MBK Partners' management were aware of a credit rating downgrade in advance and planned to file for corporate rehabilitation while concealing this fact and issuing asset-backed short-term bonds (ABSTB).
Prosecutors are also examining whether Lotte Card was involved in the process of Homeplus, acquired by MBK Partners, concealing its financial difficulties.
Previously, the Fair Trade Commission also conducted an on-site investigation into Lotte Card last March to confirm whether it applied favorable transaction conditions, such as corporate card limits, to Homeplus.


kyu0705@fnnews.com Kim Dong-kyu Reporter