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financial watchdog-Homeplus
SEOUL, July 21 (Yonhap) -- The chief of South Korea's financial watchdog Tuesday vowed to conduct a transparent and swift disciplinary process against MBK Partners over its management of Homeplus Co., the struggling retailer wholly owned by the private equity firm.
"We are currently conducting disciplinary proceedings following an on-site inspection of MBK to investigate alleged violations of the Capital Markets Act," said Lee Chan-jin, governor of the Financial Supervisory Service (FSS), during a parliamentary session.
"We will proceed with the procedures transparently and promptly regarding any violations of the law," he added.
His remarks came after the FSS decided to impose a penalty on MBK earlier this month that includes a suspension of duties, citing improper business practices and violations of internal control obligations.
The penalty must still be approved by the Financial Services Commission before it becomes final.
MBK Partners acquired a 100 percent stake in Homeplus in 2015 from British retailer Tesco Plc. for 7.2 trillion won (US$4.9 billion).
Homeplus, however, has since struggled amid an industrywide downturn in the discount retail sector and entered court-led rehabilitation proceedings in March. The proceedings were terminated by a local court in early July after the retailer failed to secure at least 200 billion won required for the restructuring.
Earlier in the day, a local court decided to resume the rehabilitation proceedings after the retailer's largest creditor, Meritz Financial Group, agreed to provide financing last week.
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