Kim Yo-kyeong, the candidate for the Financial Services Commission chairman, said on the 2nd regarding the Homeplus corporate rehabilitation situation, "We will thoroughly investigate MBK Partners and will take severe action in accordance with the law and principles if any significant illegal activities are discovered."
The candidate responded to criticisms that the authorities' actions regarding the fraudulent trading allegations of MBK Partners were insufficient during a National Policy Committee confirmation hearing that day.
The candidate noted, "The fraudulent trading allegations under the Capital Market Act have been investigated by the Financial Supervisory Service and reported to the prosecution, and additional investigations such as inspections and audits regarding violations related to MBK Partners are ongoing."
However, regarding the final sanctions against MBK, he responded, "I haven't seen the results, so I don't know," and said, "The FSS will report the seriousness of the illegal acts and decide, and ultimately, the Securities and Futures Commission will determine the level of corresponding sanctions."
The level of sanctions against institutions ranges from cancellation of registration, business suspension, institutional warnings, to institutional advisories, in that order of severity. If there is an institutional warning or higher, the National Pension Service can suspend or cancel contracts when selecting entrusted managers.
Additionally, the candidate suggested reforms to restore trust in private equity funds (PEFs). He stated, "The PEF system has been around for about 20 years," and added, "We will review based on research results and consider if there are areas for improvement in light of global consistency."