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Kim Byung-ju, chairman of MBK Partners, accused of a KRW 100 billion-scale fraud in connection with the “Homeplus incident.” (Photo = Yonhap News Agency) |
[Alpha Biz= Kim Jisun] Victims of asset-backed short-term bonds (ABSTB) linked to Homeplus have called on prosecutors to reapply for arrest warrants against Kim Byung-ju and Kim Kwang-il over alleged large-scale fraud.
On April 15, a coalition including the Homeplus ABSTB Victims Emergency Committee, financial advocacy groups, and civic organizations held a press conference in front of the Seoul Central District Prosecutors’ Office. They criticized authorities for failing to take action more than three months after a court rejected initial arrest warrants for MBK executives.
The victims allege that MBK Partners continued issuing short-term debt despite being aware of deteriorating financial conditions and potential credit rating downgrades at Homeplus. They also raised concerns that internal discussions regarding corporate rehabilitation were not adequately disclosed to investors.
The total issuance of the ABSTB is estimated at approximately KRW 401.9 billion, affecting 676 investors—many of whom are individuals who invested retirement savings or medical funds.
Prosecutors had sought arrest warrants in January against four MBK executives, including Kim Byung-ju, on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Capital Markets Act. However, the Seoul Central District Court denied the request.
Victims’ groups argue that the executives cited stable operations and normal salary payments during the court hearing, but shortly after the decision, the company announced delays in salary payments—raising questions about the credibility of their claims.
They further criticized the lack of progress in the investigation, stating that victims are facing severe financial hardship, health deterioration, and family distress as a result of the incident.
The groups urged prosecutors to disclose investigation findings transparently, promptly reapply for arrest warrants against key suspects, and move forward with indictments related to the ABSTB issuance. They also submitted a formal opinion to the prosecution’s anti-corruption division.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
