[Alpha Biz= Kim Jisun] Seoul, September 22, 2025 – Korean private equity managers IMM Private Equity (IMM PE) and IMM Investment have filed a damages lawsuit worth up to KRW 100 billion against U.S. private equity giant KKR, alleging inadequate disclosure and due diligence during the sale of Korea’s leading waste management company, EcoBit.
According to the financial investment industry, IMM PE and IMM Investment recently submitted the lawsuit to the Seoul Central District Court, naming KKR as the primary defendant.
In December 2024, an IMM consortium comprising IMM PE and IMM Investment acquired 100% of EcoBit shares from KKR and Taeyoung Group for KRW 2.07 trillion. However, in February 2025, a subsidiary of EcoBit in Cheongju, Chungcheongbuk-do, was found to have discharged leachate exceeding regulatory limits, resulting in a one-month business suspension and fines. IMM claims that KKR failed to properly disclose this information before the transaction.
IMM further alleges that KKR did not provide sufficient opportunities for due diligence during the sales process and that significant remediation work was required after the acquisition, leading to substantial financial losses.
Originally, KKR and Taeyoung Group each sold a 50% stake in EcoBit to IMM. However, due to financial difficulties, Taeyoung borrowed KRW 400 billion from KKR, pledging its EcoBit shares as collateral. Taeyoung ultimately failed to collect the sale proceeds, leaving KKR as the key counterparty in the dispute.
Industry observers note that the case marks a rare instance of a domestic private equity firm taking on a global investment powerhouse in court over an M&A transaction, drawing significant attention from Korea’s financial and legal sectors.
IMM PE, established as a spin-off from IMM Investment in 2006, now operates independently but continues to collaborate with IMM Investment on select deals.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
