While prosecutors are currently investigating the "Homeplus Co. incident" and have sought arrest warrants for MBK Partners PEF operator Chair Kim Byung-ju and Vice Chair Kim Kwang-il and other executives, MBK Partners said it "completely denies all charges contained in the arrest warrant application."
MBK Partners said in a statement on the 7th that "the prosecutors' request for arrest warrants greatly misunderstands the majority shareholder's intent and actions to revive Homeplus Co., which faced management difficulties, through rehabilitation proceedings."
It added, "The charges in the warrant application contradict the facts that have come to light and are based on misunderstandings, and we will faithfully explain in court that the prosecution's claims lack basis."
It continued, "MBK Partners has endured responsible decisions to save Homeplus Co.," adding, "The prosecution's claim that we premised a rehabilitation filing or concealed it is completely different from the facts and is unacceptable."
Regarding the inclusion of the chair in the targets of the prosecution's arrest warrant request, it argued, "Chair Kim has not been involved in the operations of portfolio companies, including Homeplus Co."
MBK Partners said, "Chair Kim and others have faithfully cooperated with the prosecution's investigation," adding, "Chair Kim returned directly from overseas to be questioned and also appeared at the National Assembly's audit to present his position in a responsible manner."
It added, "Nevertheless, seeking arrest warrants is an excessive and unjust measure," and said, "This warrant request even distorts the efforts to save the company through rehabilitation, and we are confident that the truth will surely be revealed through future legal proceedings."
That day, prosecutors sought arrest warrants for four people — Chair Kim, Vice Chair Kim, Vice President Kim Jeong-hwan, and Managing Director Lee Seong-jin — on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Financial Investment Services and Capital Markets Act. Prosecutors believe they issued a large volume of asset-backed short-term bonds (ABSTB) despite anticipating a downgrade of Homeplus Co.'s credit rating, and then abruptly filed for corporate rehabilitation, causing losses to investors.
MBK Partners – Official Statement
The prosecution's request for an arrest application reflects a fundamental misunderstanding of both the intent and actions of the controlling shareholder, which sought to revive Homeplus through court-supervised restructuring at a time when the company was facing serious financial distress.
MBK Partners categorically rejects all allegations underlying this warrant application. The request is inconsistent with the established facts and rests on a distorted interpretation of events, and MBK Partners will strongly challenge the warrant applications in court to reject them.
Michael Kim leads limited partner (LP) relations and has not been directly involved in portfolio management of Homeplus. Moreover, MBK Partners has made significant sacrifices and undertaken responsible decisions in sustained efforts to preserve and restore Homeplus. The prosecution's premise that the restructuring filing was premeditated or deliberately concealed contradicts the facts and is entirely unfounded.
MBK Partners and Michael Kim have cooperated fully and in good faith throughout the investigation. Michael Kim voluntarily submitted to questioning and appeared before the National Assembly to present his position in a responsible manner. Notwithstanding this extensive cooperation, the decision to seek an arrest application is excessive and unjustified.
This warrant application distorts even the efforts undertaken to save the company through restructuring. MBK Partners and Homeplus deeply regret this mischaracterization and will vigorously contest the prosecution's claims through the judicial process. We are confident that the facts and the truth will be clearly established by the court.