Financial authorities are expected to soon transfer the investigation details regarding MBK Partners and Homeplus management to prosecutors. This is because the prosecutors have already launched an investigation into the matter. The option to transfer the case to prosecutors through the fast-track (urgent measures by the Chairman of the Securities and Futures Commission) system is being discussed.
On the 16th, a senior official from the financial authorities noted that “currently, the Securities and Futures Commission, the Financial Supervisory Service, and the prosecutors’ staff are collaborating on this matter,” and added that “no discussions regarding the fast track have taken place yet, and if a request comes from the prosecutors, we will consider it.”
The fast track is a system that allows financial authorities to transfer cases of alleged unfair trading, which require a rapid investigation by prosecutors, directly to prosecutors without the Securities and Futures Commission's review. In response to a question on whether it seems the prosecutors will soon request the fast track, this senior official said, “Since it is already a matter under investigation by the Seoul Central District Prosecutors’ Office.” This implies it will be transferred to prosecutors soon.
Previously, FSS Commissioner Lee Bok-hyeon mentioned, “The inspection and investigation are not yet concluded, but we have already confirmed significant facts” and stated, “We will proceed with the process that allows for rapid progress.”
Homeplus is under suspicion of having issued bonds while recognizing the possibility of a credit rating downgrade and having plans to apply for a rehabilitation procedure. The timing of when MBK and Homeplus recognized the risk of a credit rating downgrade is a key issue in this case.
Hahm Yong-il, FSS Deputy Director of Capital Markets and Accounting, said, “It is highly likely that they recognized the possibility of a downgrade before the announcement of the downgrade results.”
Shinyoung Securities, Hana Securities, Hyundai Motor Securities, and Eugene Securities, among others, have filed complaints against Homeplus and the Homeplus management for violations of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud).