Prosecutors Summon MBK Chairman Kim Byung-joo Again Over 'Homeplus Incident'... Indictment Decision Nears Completion

Allegations of Short-Term Bond Issuance Prior to Credit Rating Downgrade
Supplementary Investigation Launched After Arrest Warrants Dismissed
Decision on Indictment to Follow After Additional Questioning

The prosecution has once again summoned Byungju Kim, Chairman of MBK Partners, as a suspect in relation to the "Homeplus incident." As the supplementary investigation into key executives has progressed considerably, the authorities are expected to decide soon whether to indict them.

On the 9th, the flags of the Republic of Korea and the prosecution fluttered in the wind in front of the Seoul Central District Prosecutors' Office building, as Kwak Joong-geun, former Special Warfare Commander, was reportedly summoned and investigated by the Prosecutors' Special Investigation Headquarters for Emergency Martial Law. Photo by Huh Younghan

According to legal sources on September 10, the Second Anti-Corruption Investigation Division of the Seoul Central District Prosecutors' Office (headed by Chief Prosecutor Lee Sanghyuk) began questioning Chairman Kim as a suspect from the morning, on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violation of the Capital Markets Act.

Chairman Kim and other MBK executives are accused of being aware of the potential downgrade in Homeplus’s credit rating, issuing large amounts of short-term bonds, and then filing for corporate restructuring in a way that shifted losses onto investors.

The prosecution is particularly investigating the circumstances surrounding the issuance of short-term bonds by Homeplus and MBK even before receiving the first notification of a credit rating downgrade on February 25 last year, as well as whether Chairman Kim and other executives were involved in this process.

Previously, in April last year, the prosecution raided the headquarters of Homeplus and MBK as well as the residences of Chairman Kim and other executives. In December the same year, they questioned Chairman Kim and Kwangil Kim, Vice Chairman of MBK, as suspects.

In January this year, the prosecution requested arrest warrants for Chairman Kim, Vice Chairman Kim, and other MBK executives, but the court rejected these requests. Subsequently, in February, the case was reassigned from the Third to the Second Anti-Corruption Investigation Division, and a supplementary investigation was launched.

On July 20, the prosecution summoned Jonghwan Kim, Vice President of MBK, for questioning, and on July 24, Vice Chairman Kim was also questioned. After completing an additional round of questioning of Chairman Kim on this day, the prosecution plans to review the investigation results and make a decision on whether to press charges soon.

This content was produced with the assistance of AI translation services.