MBK Partners chairman questioned over Homeplus bond issuance case
Prosecutors questioned MBK Partners Chairman Michael ByungJu Kim over allegations that Homeplus bonds were issued despite an expected credit rating downgrade.
Michael ByungJu Kim, chairman of MBK Partners, arrives at the Seoul Central District Court in Seocho District, southern Seoul, on Jan. 13 for a pretrial detention hearing.
YONHAP
Prosecutors summoned MBK Partners Chairman Michael ByungJu Kim for questioning as a suspect in connection with allegations that the private equity company knowingly sold Homeplus bonds before prices tanked.
MBK Partners is the retailer's majority shareholder and is accused of operating the scheme after buying Homeplus in 2015.
The Seoul Central District Prosecutors' Office's second anti-corruption division has been questioning Kim since Thursday morning on suspicion of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Financial Investment Services and Capital Markets Act.
Kim is suspected of causing investor losses by issuing a large number of bonds despite allegedly knowing in advance that Homeplus could face a credit rating downgrade.
Prosecutors sought arrest warrants in January for Kim and three other Homeplus executives, but the court rejected all four, saying there was insufficient evidence to substantiate the allegations to a degree that would warrant detention.
The Seoul Central District Prosecutors' Office later reassigned the case to the second anti-corruption division.
Thursday's questioning marks the first time Kim has been summoned since the case was reassigned.
Hypermarket chain Homeplus came close to a complete shutdown in July after filing for corporate rehabilitation in March last year. It was able to proceed with the rehabilitation process after Meritz Financial Group, the retailer's largest creditor, approved a 200 billion won ($149 million) debtor-in-possession loan and MBK Partners agreed to provide a joint guarantee for the same amount, meeting the court's requirements.
BY KIM EUN-BIN [[email protected]]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
