MBK Partners, one of Asia’s largest private equity firms, is facing scrutiny regarding its management of Homeplus, South Korea’s second-largest hypermarket chain. The South Korean financial watchdog has initiated inspections of securities firms and credit rating agencies in connection with the Homeplus case. This follows recent legislative changes, including the passage of an amendment to the External Audit Act, which allows fines of up to 1 billion won for companies that gain undue profits through accounting fraud, even if the profits are difficult to quantify. Additionally, the Financial Supervisory Service has conducted an on-site inspection, raising questions about whether Homeplus had prior knowledge of a potential credit rating downgrade.