The Financial Supervisory Service completed disciplinary review related to allegations about private equity fund (PEF) manager MBK Partners' acquisition of Homeplus Co. and infringement of investors' interests. However, it decided to keep the level of sanctions confidential.
The Financial Supervisory Service (FSS) said on the 2nd in a notice to the press corps that it convened the 14th Sanctions Review Committee and reviewed and resolved agenda items related to MBK.
However, the Financial Supervisory Service (FSS) said regarding the level of sanctions on MBK, "As the sanction procedures are ongoing, the results of the Sanctions Review Committee's deliberations, including the specific level of sanctions, will not be disclosed." Typically, when the Financial Supervisory Service decides on sanctions of institution warning or higher, they are finalized after going through the Securities and Futures Commission and the Financial Services Commission.
The FSS's decision came after about five months. After deliberations were put on hold following two meetings in Jan. last year, it was made a day before the deadline on the 3rd for approval of Homeplus Co.'s rehabilitation plan.
In Nov. last year, the FSS issued a prior notice to MBK of heavy sanctions, including suspension from duty. Suspension from duty is a heavy sanction equivalent to a business suspension for a general asset management company. It was the first time then that heavy sanctions were pursued against a private equity fund (PEF) manager (GP; general partner).