Four key executives, including Chairman Kim Byung-ju of MBK Partners, appeared for a pretrial detention hearing at the Seoul Central District Court on the morning of the 13th.
Chairman Kim Byung-ju arrived at the Seoul Central District Court at about 9:40 a.m. Kim received questions from reporters such as "Do you admit the charges?" "Do you accept personal responsibility?" and "Please say a word to investors," but entered the courtroom without answering.
Vice Chairman and Homeplus Co. co-CEO Kim Kwang-il arrived at the Seoul Central District Court at about 9:50 a.m. Kim was asked the same questions but likewise did not respond.
Presiding Judge Park Jeong-ho, dedicated to warrants at the Seoul Central District Court, will hold pretrial detention hearings starting at 10 a.m. for Chairman Kim Byung-ju; Vice Chairman and Homeplus Co. co-CEO Kim Kwang-il; MBK Vice President Kim Jeong-hwan; and Homeplus Co. Executive Director Lee Seong-jin.
Earlier, the Third Anti-Corruption Investigation Division of the Seoul Central District Prosecutors' Office (Acting Chief Prosecutor Kim Bong-jin) sought arrest warrants on the 7th, applying charges including fraud and violations of the Financial Investment Services and Capital Markets Act.
Prosecutors believe Homeplus Co. and its major shareholder MBK issued 82 billion won in asset-backed short-term bonds (ABSTB) in February last year while concealing the possibility of a credit rating downgrade, then abruptly filed for rehabilitation, causing losses to bond investors. Prosecutors say Chairman Kim Byung-ju and others were involved in the process. The other three, including Vice Chairman Kim Kwang-il, face additional charges of accounting fraud, excluding Chairman Kim Byung-ju.