FSS Governor Lee Bok-hyun said Wednesday the regulator's task force had begun an inspection of MBK, the majority shareholder of Homeplus. The inquiry follows heightened concerns about MBK's transparency, particularly after Chairman Kim Byung-ju failed to appear at a National Assembly hearing on Tuesday.
"We have initiated an investigation into MBK to verify allegations surrounding the financial distress of Homeplus," Lee said, adding that Kim's absence from the parliamentary inquiry was "regrettable."
Under South Korean capital market laws, the FSS has the authority to examine private investment entities when deemed necessary for financial market stability or to uphold fair trading practices.
Investigators are particularly focused on whether MBK issued commercial paper and short-term bonds while having prior knowledge of the company’s credit downgrade and an impending court receivership — actions that could constitute criminal offenses if proven.
The FSS had previously opened investigations into Shinyoung Securities, which underwrote Homeplus' short-term bond issuance, as well as Korea Investors Service and Korea Ratings, following Homeplus’ application for court receivership on March 13.
reporter
Kim Dong-young
davekim0807@ajupress.com
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