The Financial Supervisory Service(FSS) is launching an investigation into MBK Partners, the major shareholder of Homeplus, in connection with the company’s decision to file for court rehabilitation.

Lee Bok-hyun, governor of the FSS, told reporters on Wednesday that the investigation would begin the same day.

This marks the first time the financial watchdog has launched an investigation into a private equity fund in relation to a specific case.

Under the Capital Markets Act, the head of the FSS is authorized to inspect the operations and financial situation of institutional private collective investment vehicles if necessary to maintain the stability of the financial markets or to ensure sound trading practices.

According to the FSS governor, the investigation will not be limited to the timing of Homeplus’ credit rating downgrade or its application for court-led rehabilitation.

Lee added that the FSS will form a task force to focus on the matter during the first half of the year.