MBK Companions refuted the next by way of explanatory supplies on January. 12, concerning factual relationships and logical contradictions in latest reviews containing the prosecution’s claims about Homeplus accounting practices, as follows as follows.
First, some reviews suggesting that MBK Companions founder and companion Kim Byung-joo is related to Homeplus accounting practices are opposite to details. “Companion Kim Byung-joo has no connection to Homeplus accounting follow issues. The appropriateness of accounting practices must be decided in accordance with corporate-level accounting requirements and procedures, and connecting this to shareholders’ duty doesn’t conform to each factual relationships and accounting practices.”
Second, the capital conversion of redeemable convertible most popular shares (RCPS) issued by Homeplus and land asset revaluation are each legit accounting practices performed lawfully in accordance with related accounting requirements.
The capital conversion of redeemable convertible most popular shares was executed in compliance with related accounting requirements by way of goal evaluation by exterior accounting companies. RCPS is a hybrid monetary instrument that may be categorized as debt or fairness in accordance with contract phrases, and this capital conversion corresponds to an accounting classification adjustment to obviously replicate the substance and rights relationship of the related monetary instrument. This measure was applied after credit standing downgrades and after the issuance of asset-backed subordinated bonds (ABSTB), and isn’t a measure that includes money influx or liquidity enchancment.
Land asset revaluation was additionally performed by way of official procedures based mostly on goal analysis by appraisal companies approved by the federal government, in accordance with procedures explicitly permitted by accounting requirements. “Quite a few firms holding actual property have proceeded with asset revaluations in the identical method, and actually, Lotte Buying and Resort Shilla have additionally performed revaluations of land belongings previously.” Monetary statements reflecting asset revaluation outcomes have been additionally disclosed in June 2025, after the rehabilitation utility.
In conclusion, the prosecution is deciphering accounting practices which can be unrelated to rehabilitation process graduation functions and have been lawfully performed in accordance with accounting requirements previous to rehabilitation procedures as problematic, thereby arguing that the rehabilitation procedures themselves have been additionally performed with damaging intentions. “Such arguments are tough to determine logically, and this level can be sufficiently demonstrated in courtroom.”
