In connection with the "Homeplus Co. case," the schedule for the pre-arrest suspect questioning (warrant review) of Chairman Kim Byung-joo of MBK Partners, Vice Chairman Kim Kwang-il, and other executives, who are accused of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, has been changed.
The Seoul Central District Court announced on the afternoon of the 9th that the start time for the warrant review for Chairman Kim, Vice Chairman Kim, Vice President Kim Jeong-hwan of MBK Partners, and Executive Director Lee Seong-jin of Homeplus Co. was changed to 10 a.m. The hearing, originally set for 1:30 p.m., was moved up by about 3 hours and 30 minutes, and Presiding Judge Park Jeong-ho, who is in charge of warrant cases, will remain on the bench.
According to legal sources, the start time for a warrant review is typically moved up at the request of the defense team, or as a result of the court reflecting its intention to carefully review voluminous documents and closely listen to the suspect's final statement.
Accordingly, the management, including Chairman Kim, is expected to devote considerable time to their final statements at next week's warrant review. As MBK has actively refuted various allegations, including violations of the Financial Investment Services and Capital Markets Act, it is expected to directly challenge the prosecution's grounds for seeking arrest warrants in court.
On the 7th, prosecutors sought arrest warrants for the suspects 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. Homeplus Co. issued 82 billion won in asset-backed short-term bonds (ABSTB) on Feb. 25 last year, but three days later its short-term credit rating was downgraded from A3 to A3-, and on Mar. 4 of the same year it applied to the court for corporate rehabilitation.
Prosecutors suspect that MBK Partners and Homeplus Co. recruited bond investors even though they were aware of the impending downgrade at least before Feb. 25. This amounts to the view that they raised investment funds despite knowing the default risk. Prosecutors took over the case from the Financial Supervisory Service in April last year and launched an investigation, and on the 28th of the same month they raided the headquarters of Homeplus Co. and MBK Partners.
Prosecutors then raided Korea Ratings and Korea Corporate Credit Rating on May 12 last year, and on the 2nd of last month summoned the vice chairman as a suspect for questioning.
MBK Partners says it completely denies all the charges listed in the arrest warrants. MBK Partners said the previous day, "We will faithfully explain in court that the prosecution's claims in seeking warrants are groundless, as they contradict the facts that have emerged and are based on misunderstandings." This is seen as an assertion that there are errors in the prosecution's application of the law.