Prosecutors Accelerate Probe into MBK Executives Over ‘Homeplus Crisis’ as Victim Interviews Begin

Prosecutors Accelerate Probe into MBK Executives Over ‘Homeplus Crisis’ as Victim Interviews Begin: Reporter Kim Jisun / approved : 2026-05-20 06:44:46

Michael Kim, Chairman of MBK Partners. (Photo: Yonhap News Agency)

[Alpha Biz= Kim Jisun] South Korean prosecutors are stepping up their investigation into executives at MBK Partners over the so-called “Homeplus crisis,” launching victim interviews as part of efforts to advance the case.

According to legal sources on May 19, the Seoul Central District Prosecutors’ Office’s anti-corruption unit questioned a corporate investor affiliated with a victims’ committee related to short-term corporate debt issued by Homeplus. The investor is reportedly claiming losses of approximately KRW 1 billion.

Prosecutors are examining allegations that MBK executives, including key decision-makers, issued large volumes of short-term debt despite being aware of a pending credit rating downgrade at Homeplus, and subsequently filed for corporate rehabilitation, causing investor losses.

Credit rating agency Korea Ratings downgraded Homeplus’ rating from A3 to A3- on Feb. 28 last year. The company then filed for court-led restructuring just four days later.

Investigators are focusing on whether Homeplus and MBK had prior knowledge of the downgrade before its official notification and whether the issuance of short-term bonds was intended to shift financial losses onto investors.

The probe has included raids on MBK and Homeplus offices and residences of executives, including Chairman Michael Kim and Vice Chairman Kim Kwang-il, as well as summons for questioning.

Earlier this year, prosecutors sought arrest warrants on charges including fraud and violations of capital markets law, but the court rejected the request, citing insufficient evidence to justify detention despite acknowledging the severity of the alleged damages.

After a period of limited progress, the case was reassigned to a different anti-corruption division in February. Authorities have recently resumed momentum, including questioning officials from the credit rating agency involved, as they continue to build the case.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

https://www.alphabiz.co.kr/news/view/1065617049503332
This article is based on global economic content from Alphabiz, which distributes English-language news on Korean markets and companies to international audiences.