According to Yonhap, South Korea's Financial Supervisory Service (FSS) chief Lee Chan-jin said the watchdog will handle disciplinary proceedings against MBK Partners transparently and without delay over alleged violations tied to its management of Homeplus Co. Lee said the FSS is reviewing possible breaches of the Capital Markets Act after an on-site inspection of MBK, and added that any action will move forward promptly and openly. His remarks followed the FSS's earlier decision this month to seek a penalty against MBK that includes a suspension of duties, citing improper business practices and failures in internal control obligations. The proposed penalty still needs approval from South Korea's Financial Services Commission before it becomes final.
MBK Partners bought a 100% stake in Homeplus from Tesco Plc. in 2015 for 7.2 trillion won ($4.9 billion). Homeplus entered court-led rehabilitation proceedings in March amid a downturn in the discount retail sector, and a local court ended the process in early July after the retailer failed to secure at least 200 billion won needed for restructuring. Earlier on Tuesday, the court decided to resume the rehabilitation process after Homeplus' largest creditor, Meritz Financial Group, agreed last week to provide financing.
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