Lotte Card Headquarters
(Photo courtesy of Lotte Card)

 

 

[Alpha Biz= Kim Jisun] SEOUL, July 14 – South Korean prosecutors have raided the headquarters of Lotte Card as part of an investigation into allegations that Homeplus issued short-term bonds while concealing an impending credit downgrade.



The Seoul Central District Prosecutors' Office conducted the search and seizure on suspicion of fraud and violations of the Capital Markets Act. The investigation centers on whether Lotte Card played a role in assisting Homeplus, which is owned by private equity firm MBK Partners, in disguising its financial difficulties.



Earlier in March, the Fair Trade Commission launched a separate inquiry into whether Lotte Card had granted favorable corporate card limits or other advantageous terms to Homeplus.



Authorities are now scrutinizing the extent of Lotte Card’s involvement in potentially misleading investors regarding the financial soundness of Homeplus prior to the bond issuance.

 

 

 

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