Prosecutors Summon MBK Chairman Kim Over Homeplus Fraud Allegations

Prosecutors investigating the Homeplus crisis have summoned MBK Partners Chairman Kim Byung-joo for questioning as a suspect, it was confirmed on Monday.

The Seoul Central District Prosecutors' Office's Anti-Corruption Division 3 questioned Kim on Sunday on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Capital Markets Act. Prosecutors reportedly grilled Kim on when he became aware of the possibility of Homeplus's credit rating downgrade and whether he received reports and gave approvals during the process of issuing large-scale short-term bonds.

The summons came after prosecutors called in Kim Kwang-il, MBK vice chairman and Homeplus CEO, on June 2, raising expectations that a decision on the case is imminent as investigators bring in key figures at the center of the allegations.

Prosecutors suspect that MBK, Homeplus's largest shareholder, and Homeplus management foresaw the credit rating downgrade but proceeded to issue large-scale short-term bonds before promptly filing for corporate rehabilitation, effectively passing losses onto investors.

Homeplus's credit rating was downgraded from A3 to A3-minus—just one notch above speculative grade (B)—on February 28. Four days later, on March 4, the company filed for court receivership.

Prosecutors are particularly focused on the possibility that MBK and Homeplus were aware of the impending downgrade before February 25, when credit rating agencies issued their first notification. On that same day, Homeplus sold 82 billion won worth of bonds through Shinyoung Securities and other underwriters. Prosecutors believe that issuing bonds while a rehabilitation filing was already planned constitutes investor fraud. Once a rehabilitation filing is accepted, financial obligations are frozen.

Prosecutors suspect Kim had effectively anticipated the credit rating downgrade after receiving regular reports on Homeplus's accumulated losses since late 2023. Investigators have also reportedly obtained internal documents from financial regulators showing evidence that MBK and Homeplus officials identified the possibility of a rating downgrade in advance and prepared for the rehabilitation filing.

The investigation team has also confirmed that Homeplus received warnings during meetings with two credit rating agencies on February 13-14 that "downward pressure on the credit rating is very heavy."

Prosecutors launched the investigation immediately after receiving the case on a fast-track basis from the Financial Services Commission on April 28, raiding the headquarters of both Homeplus and MBK. On May 12, investigators searched Korea Ratings and Korea Enterprise Data, and on May 13-14, they questioned Homeplus's chief compliance officer and credit rating agency officials as witnesses.

The investigation slowed amid leadership changes and the prosecutorial reform debate ahead of the June 3 presidential election. However, since Park Chul-woo took office as Seoul Central District Prosecutors' Office chief on May 20, questioning of key figures has resumed, bringing the investigation toward its final stage.