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- Seoul, March 28, 2025 — Several securities firms are reportedly considering legal action against Homeplus adn it's parent company, MBK Partners, alleging that the companies concealed Homeplus's deteriorating...
- According too sources within the securities industry, multiple firms are preparing to sue Homeplus and MBK Partners for alleged violations of laws concerning fraud and aggravated punishment for...
- The core of the dispute revolves around the issuance of Asset-Backed Short-Term Bonds (ABSTB), specifically Cards Basic Light Securities.
Securities Firms Consider Legal Action Against Homeplus, MBK Partners Over Bond Issuance
Table of Contents
- Securities Firms Consider Legal Action Against Homeplus, MBK Partners Over Bond Issuance
- Securities Firms Consider Legal Action Against Homeplus, MBK Partners Over Bond Issuance
- Key Questions and Answers
- What is the main issue at the center of the dispute?
- Which securities firms are perhaps involved in the legal action?
- What are ABSTB?
- How does the ABSTB issuance process work?
- What is the total outstanding balance of the short-term bonds?
- why is legal action being considered now?
- What are the main challenges in this case?
- What legal violations are being alleged?
- Summary Table: Key Facts of the Case
- Key Questions and Answers
Seoul, March 28, 2025 — Several securities firms are reportedly considering legal action against Homeplus adn it’s parent company, MBK Partners, alleging that the companies concealed Homeplus’s deteriorating credit rating while issuing short-term bonds.
According too sources within the securities industry, multiple firms are preparing to sue Homeplus and MBK Partners for alleged violations of laws concerning fraud and aggravated punishment for specific economic crimes.
The core of the dispute revolves around the issuance of Asset-Backed Short-Term Bonds (ABSTB), specifically Cards Basic Light Securities.
the securities firms claim that Homeplus and MBK Partners were aware of the impending downgrade of Homeplus’s credit rating but proceeded with the issuance and distribution of the ABSTB without disclosing this critical information.
Several securities firms are reportedly involved in the potential legal action, including Shinyoung securities, which issued the ABSTB thru a special purpose corporation (SPC). Hana Securities, Hyundai Vehicle Securities, and Eugene Investment & securities are also said to have sold the bonds to investors.
However, officials from Shinyoung Securities and Eugene Investment & Securities have stated that the matter is still under review or that they have no confirmation at this time.
Securities companies and asset managers involved in the sale of Homeplus short-term bonds have reportedly been holding joint meetings to discuss the situation following Homeplus’s application for corporate rehabilitation procedures, also known as legal management.
Initially, there was caution regarding legal measures, as the industry explored the possibility of recognizing ABSTB as commerce bonds through consultations with Homeplus and MBK Partners.
However, the focus shifted towards legal action as questions arose during the National Assembly’s Political Affairs Committee hearings, suggesting that Homeplus and MBK Partners were aware of the credit rating issues in advance.
One securities industry official stated, It seems that the atmosphere has changed toward legal measures as various testimonies have been supported by various testimony through query in question.
According to a report, the outstanding balance of short-term bond sales, including Homeplus Corporate Bonds (CP), ABSTB, and other short-term bonds, totaled approximately ₩594.9 billion as of March 3, 2025. Securities firms are estimated to hold ₩27.5 billion of this balance.
A complicating factor is that Homeplus is not the direct issuer of the ABSTB,which could make it tough to assign legal obligation. The process involves Homeplus using corporate credit cards for payments, with the card company then selling the receivables to a special purpose company (SPC) created by a securities firm.
The SPC then issues asset-backed securities, using the credit card receivables as the underlying asset. These securities are then sold by securities firms to institutional and individual investors.
Therefore, determining the primary responsible party for the issuance and distribution of the ABSTB is a key legal challenge.
Securities Firms Consider Legal Action Against Homeplus, MBK Partners Over Bond Issuance
Introduction
This article provides a Q&A-style overview of the potential legal action being considered by several securities firms against Homeplus and MBK Partners. the firms allege that the companies concealed critical information regarding Homeplus’s credit rating when issuing short-term bonds.
Key Questions and Answers
What is the main issue at the center of the dispute?
The core issue revolves around the issuance of Asset-Backed Short-Term Bonds (ABSTB), specifically ”Cards Basic Light Securities.” Securities firms claim that Homeplus and MBK Partners were aware of an impending downgrade of Homeplus’s credit rating. They are accused of issuing and distributing the ABSTB without disclosing this crucial information to investors. This lack of disclosure could violate laws concerning fraud and aggravated punishment for specific economic crimes.
Which securities firms are perhaps involved in the legal action?
Several securities firms are reportedly considering legal action:
Shinyoung Securities, which issued the ABSTB through a special purpose corporation (SPC)
Hana Securities
Hyundai Vehicle Securities
Eugene investment & Securities
Officials from Shinyoung Securities and Eugene Investment & Securities have stated the issue is still under review.
What are ABSTB?
ABSTB, or Asset-Backed Short-Term Bonds, are short-term debt instruments. In this case, they are linked to Homeplus’s credit card payments.
How does the ABSTB issuance process work?
The ABSTB issuance process involves several steps:
- Homeplus uses corporate credit cards for payments.
- The card company sells the receivables (the right to receive payment) to a special purpose company (SPC) created by a securities firm.
- The SPC issues asset-backed securities, using the credit card receivables as the underlying asset.
- These securities are then sold by securities firms to institutional and individual investors.
This structure adds complexity to determining legal duty.
What is the total outstanding balance of the short-term bonds?
As of March 3, 2025, the outstanding balance of short-term bond sales, including Homeplus Corporate Bonds (CP), ABSTB, and other short-term bonds, totaled approximately ₩594.9 billion. Securities firms are estimated to hold ₩27.5 billion of this balance.
why is legal action being considered now?
The consideration of legal action intensified after Homeplus filed for corporate rehabilitation procedures, also known as legal management. Questions arose during the National Assembly’s Political Affairs Committee hearings, suggesting Homeplus and MBK Partners were aware of credit rating issues in advance.The discovery of possible deception by Homeplus and MBK Partners has shifted the industry’s focus toward legal measures.
What are the main challenges in this case?
One major challenge is that Homeplus is not the direct issuer of the ABSTB. The SPC, created by a securities firm, actually issues the bonds. This structure complicates the process of assigning legal responsibility for the issuance and distribution of the ABSTB.
What legal violations are being alleged?
The securities firms are alleging violations of laws concerning fraud and aggravated punishment for specific economic crimes. Specifically, the firms claim that Homeplus and MBK Partners concealed material information about the company’s deteriorating credit rating.
Summary Table: Key Facts of the Case
| Aspect | Details |
| :————————– | :————————————————————————————————————– |
| Main Issue | Alleged concealment of credit rating downgrade when issuing ABSTB |
| Bonds Involved | Asset-Backed Short-Term Bonds (ABSTB) |
| Parties Involved | Homeplus, MBK Partners, and several securities firms (Shinyoung Securities, Hana Securities, etc.) |
| Bond Issuance Process | Homeplus uses credit cards, receivables sold to SPC, SPC issues ABSTB, sold to investors |
| Total Bond Balance | Approx. ₩594.9 billion (as of March 3, 2025), with securities firms holding an estimated ₩27.5 billion |
| Legal Allegations | Violations of laws regarding fraud and aggravated punishment for economic crimes due to non-disclosure. |