South Korean Prosecutors Raid Homeplus and MBK Partners Over Fraud Allegations and Bond Issuance

South Korean prosecutors conducted a search and seizure operation at the headquarters of Homeplus, the country's second-largest supermarket chain, and its largest shareholder, private equity firm MBK Partners, on April 28, 2025. The investigation focuses on allegations of fraud and violations of the Capital Markets Act, including accusations that the management issued short-term bonds despite being aware of a credit rating downgrade. This move has raised suspicions of deceptive practices by Homeplus's executives. The probe is part of a broader crackdown on corporate misconduct, with authorities also investigating related figures and entities. Additionally, prosecutors are investigating allegations of personnel appointment irregularities involving the family of a Buddhist monk, with travel restrictions imposed on a related individual. The investigation continues with planned interrogations, including that of Myung Tae-kyun at the Seoul High Prosecutors' Office.