Prosecutor's Investigation into Homeplus Incident Intensifies, Forced Search Operations Initiated

The prosecution has launched a full-scale forced investigation related to the 'Homeplus Incident.'

According to the legal community on the 28th, the Seoul Central District Prosecutors' Office's Anti-Corruption Investigation Division 3 (Chief Prosecutor Lee Seung-hak) has been conducting searches from the morning at Homeplus's headquarters in Gangseo-gu, Seoul, as well as at the Gwanghwamun office of its major shareholder, MBK Partners, located in Jongno-gu, Seoul.

The prosecution is investigating the executives of Homeplus and MBK Partners for alleged violations of the Specific Economic Crimes Act related to fraud and the Capital Markets Act. They are suspected of hiding the fact that they were preparing to apply for corporate rehabilitation procedures and attempted to transfer the company's losses to investors by issuing short-term bonds.

MBK Partners Faces Troubles Due to Repeated Legal Issues

MBK Partners, the major shareholder of Homeplus, was also subjected to a search by the Financial Securities Crimes Joint Investigation Team of the Southern District Prosecutors' Office on the 24th, in connection with a management rights dispute involving Korea Zinc and Youngpoong.

Homeplus filed for corporate rehabilitation (court management) in February of this year, during which time allegations of illegal activities related to the issuance of short-term bonds were raised.

Investors have begun legal action, claiming that Homeplus and MBK Partners deliberately concealed the company's financial situation and issued bonds to shift the losses to them.