Prosecutors opened an investigation into allegations surrounding retail giant Homeplus' sudden application for rehabilitation

According to the judicial community, the Seoul Central District Prosecutors' Office assigned the case filed by a group of securities firms against Homeplus management to its third anti-corruption department on Wednesday. 

Four securities firms—Shinyoung Securities, Hana Securities, Hyundai Motor Securities and Eugene Investment—that issued and sold Homeplus bonds filed a complaint on Tuesday, accusing the retailer of fraud and violating the Financial Investment Services and Capital Markets Act. 

The complaint named Kim Kwang-il, vice chairman of MBK Partners, the private equity firm controlling Homeplus, and Homeplus President and CEO Joh Joo-yun as the accused. 

The securities firms accused Homeplus and MBK Partners of facilitating the sale of asset-backed short-term bonds worth approximately six-hundred billion won, or four-hundred-ten-million U.S. dollars, in preparation for the rehabilitation process 

The firms suspect that Homeplus and its largest shareholder were aware of an impending decline in the retailer's credit rating