MBK Partners to Seek Legal Recourse Following 'Heavy Sanctions' in Homeplus Case

MBK Partners, a domestic private equity firm, stated that it will "faithfully explain its position on the relevant issues through future legal procedures" regarding the results of the Financial Supervisory Service's (FSS) Sanctions Review Committee concerning the Homeplus case.

In a statement released today (July 3), MBK said, "We have faithfully explained that the issues raised, particularly the change in terms for Homeplus redeemable convertible preference shares (RCPS), were reasonable management decisions aimed at protecting investor interests by improving Homeplus's financial structure and preserving corporate value at the time."

The firm added, "The RCPS invested in by the National Pension Service and the Homeplus RCPS with the modified terms are different securities. Nevertheless, we find it regrettable that reports suggest our position has not been sufficiently accepted."

MBK emphasized, "The results of the FSS Sanctions Review Committee do not finalize the sanctions, as the deliberation and resolution procedures of the Financial Services Commission remain. We will continue to faithfully explain our position on the relevant issues through future legal procedures."

The FSS held a Sanctions Review Committee meeting on July 2 regarding the Homeplus case and reached a decision to impose heavy sanctions, including the suspension of duties, on MBK.

It is understood that the FSS determined MBK committed acts of unfair business practices under the Capital Markets Act and violated internal control obligations.

The regulator alleges that MBK, through a special purpose company (SPC) established for the acquisition of Homeplus, changed the terms of the RCPS to favor Homeplus and waived redemption rights. In this process, the FSS claims that MBK infringed upon the interests of investors, such as the National Pension Service, by reducing the possibility of recovering their investments.

The sanctions will be finalized following a resolution by the Financial Services Commission.

(Photo: Yonhap News)
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