MBK Partners Chairman Kim Byung-joo summoned over Homeplus investigation

Prosecutors from the Seoul Central District Prosecutors' Office have summoned Kim Byung-joo, Chairman of MBK Partners, for questioning regarding the ‘Homeplus incident’. Kim is being investigated as a suspect for alleged violations of the Capital Markets Act and fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.

The investigation focuses on whether MBK and Homeplus management issued and sold asset-backed short-term electronic bonds (ABSTB) while being aware of the company’s deteriorating financial situation and the potential for a credit rating downgrade, thereby causing losses to investors. Although a previous request for arrest warrants against Kim and other executives was rejected by the court in January due to insufficient evidence, prosecutors have since reassigned the case to a new unit to conduct reinforced investigations.

This legal scrutiny coincides with MBK’s ongoing management rights dispute over Korea Zinc. In a recent extraordinary shareholders' meeting, a candidate recommended by Korea Zinc was elected as an auditor with 81.8% of the votes, while candidates proposed by the MBK-Young Poong alliance failed to secure the position. Analysts suggest that the legal risks surrounding Homeplus may be impacting MBK’s credibility and influence during the Korea Zinc takeover attempt.