Lee Chan-jin Says Sanctions Process Over Homeplus Will Proceed Swiftly and Transparently

[Financial News] The Financial Supervisory Service said it would swiftly complete sanctions procedures against MBK Partners and securities firms that sold bonds in connection with the Homeplus case.
Lee Chan-jin, Governor of the Financial Supervisory Service, said at an emergency hearing on the Homeplus case held at the National Assembly on the 21st, "We will proceed with sanctions procedures in a transparent and swift manner regarding the alleged violations confirmed at MBK Partners and Homeplus."
Lee explained, "We conducted an on-site inspection of MBK Partners to determine whether it violated the Capital Markets Act, and sanctions procedures are now under way." He added, "We also carried out inspections of Hana Securities and others over allegations of improper sales of short-term bonds."
Earlier this month, the Financial Supervisory Service decided to impose severe disciplinary action on MBK Partners, including a suspension of duties, in connection with the Homeplus case.
The move is understood to stem from the agency's view that MBK Partners, through a special purpose company it set up to acquire Homeplus, changed the terms of redeemable convertible preferred shares in Homeplus's favor and gave up its redemption rights, reducing the likelihood that institutional investors, including the National Pension Service (NPS), could recover their investments and thereby harming investor interests.
Lee said, "We will work closely with relevant agencies to minimize damage to tenant businesses and workers."
Regarding losses from investment in Homeplus short-term bonds, he said, "The investigation into improper sales is effectively complete," and added, "We are actively reviewing measures to help investors recover their losses."
Kwon Dae-young, vice chairman of the Financial Services Commission (FSC), said, "The government takes this matter very seriously," adding, "We will closely monitor the progress of the court-led rehabilitation process and continue to prepare support measures with relevant agencies to minimize the impact on the livelihoods and economy of ordinary people."

[email protected] Park Ji-yeon Reporter