Seoul Prosecutors Raid Lotte Card Headquarters Amid Homeplus Scandal Investigation

On July 14, 2025, the Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office, led by Chief Lee Seung-hak, initiated a search and seizure operation at the headquarters of Lotte Card. The investigation is part of the ongoing inquiry into the so-called 'Homeplus Incident,' with allegations including fraud under the Specific Economic Crimes Aggravated Punishment Act and violations of the Capital Markets Act.

The Homeplus Incident centers around claims that Homeplus and its major shareholder, MBK Partners, knowingly issued and sold large amounts of short-term bonds despite anticipating a downgrade in their credit rating, resulting in significant losses for investors. Investors have accused Lotte Card, a subsidiary of Homeplus, of complicity in exacerbating these losses, prompting the prosecutors to conduct interviews with the complainants on July 1.

During these interviews, investors raised suspicions that Homeplus mobilized its affiliate, Lotte Card, in anticipation of a credit rating downgrade due to deteriorating management conditions. Notably, Homeplus's credit rating fell from A2- to A3+ in August 2022, while Lotte Card's transaction volume surged from 126.4 billion KRW in 2023 to 795.3 billion KRW the following year, marking an increase of over six times.

The prosecutors plan to investigate whether Homeplus, MBK Partners, and Lotte Card intentionally contributed to the investors' losses.