Prosecutors summon MBK’s Kim Byung-joo over ‘Homeplus case’; investigation nearing conclusion

[Financial News] Prosecutors investigating allegations surrounding Homeplus’s issuance of large-scale asset-backed short-term bonds (ABSTBs) and its application for corporate rehabilitation have summoned Kim Byung-joo, chairman of MBK Partners. With questioning of the key suspects nearing completion, prosecutors are expected to decide soon whether to indict them.
The Seoul Central District Prosecutors' Office’s Anti-Corruption Investigation Division 2, headed by Chief Prosecutor Lee Sang-hyuk, has been questioning Kim since the morning of the 10th as a suspect accused of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Capital Markets Act.
Kim is accused of issuing large-scale asset-backed short-term bonds despite anticipating a downgrade in Homeplus’s credit rating, then applying for corporate rehabilitation and causing losses to investors.
After launching its investigation in April last year, prosecutors sought arrest warrants in January for four executives: Kim, Kim Kwang-il, vice chairman of MBK Partners and co-CEO of Homeplus; Vice President Kim Jung-hwan; and Executive Vice President Lee Seong-jin.
However, the court rejected all the warrants, finding that the allegations had not been sufficiently substantiated to justify detention.
Prosecutors later reassigned the case from the Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office to Division 2, saying they would review it from an objective perspective. This is the first time Kim has been summoned since the reassignment.
The investigation team is reportedly believed to have identified indications of deceptive conduct during Homeplus’s issuance of short-term bonds to raise funds after its business conditions deteriorated.
After completing their questioning of Kim and the other executives, prosecutors are expected to decide whether to indict them in the near future.
 
[email protected] Choi Eun-sol Reporter