In this file photo, discount store chain Homeplus Co.’s sign is seen outside one of its stores in Seoul on March 9, 2025. (Image courtesy of Yonhap)
SEOUL, March 21 (Korea Bizwire) — South Korea’s financial watchdog said Friday it will look into whether Homeplus Co. has violated accounting rules as speculation mounts over the retailer’s controversial short-term debt sale.
The Financial Supervisory Service (FSS) said it will inspect to verify whether the retailer, wholly owned by private equity firm MBK Partners Ltd., has been properly assessing its assets, debts and others.
The watchdog’s move came days after it said it will inspect MBK Partners to look into whether there have been any flaws in the process of the retailer’s short-term debt sale and its filing for court rehabilitation.
On March 4, Homeplus entered court-led rehabilitation proceedings after two rating appraisers lowered the rating of its corporate bonds to A3- from A3, citing the company’s lack of efforts to improve its financial health.
Homeplus was reportedly notified by a credit rating agency on Feb. 25 that its rating was likely to decline, but the company issued asset-backed short-term bonds (ABSTBs) worth 82 billion won (US$56.3 million) through Shinyoung Securities the same day.
The FSS also has been investigating the two rating agencies and Shinyoung Securities over whether the securities firm had sold the bonds while already being aware of Homeplus’ imminent credit rating downgrade.
Earlier, MBK Partners said its chair, Kim Byung-ju, will use his personal assets to support suppliers of the major discount store chain affected by the court-led rehabilitation process.
MBK has also come under criticism for placing Homeplus into rehabilitation without making self-recovery efforts, though its massive acquisition debt has led to the retailer’s financial difficulties.
(Yonhap)
