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Kim Byung-ju, Chairman of MBK Partners, adjusts his glasses while listening to questions from lawmakers during the National Assembly’s Political Affairs Committee audit of the Fair Trade Commission for 2025, held on Jan. 14. (Yonhap News) |
[Alpha Biz= Kim Jisun] Seoul — South Korean prosecutors have sought arrest warrants for MBK Partners Chairman Kim Byung-ju and other senior executives, widening a probe that is drawing close scrutiny from domestic and global institutional investors.
The Seoul Central District Court will hold warrant review hearings on Jan. 13 for Kim and three others, including Kim Kwang-il, vice chairman of MBK and co-chief executive of Homeplus. Prosecutors accuse the executives of fraud under Korea’s Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Capital Markets Act, according to court and prosecution officials.
The investigation centers on allegations tied to MBK’s management of Homeplus, following the retailer’s surprise application for court-led rehabilitation proceedings last year. The case has heightened concerns across Korea’s private equity industry, particularly as MBK faces growing legal and reputational risks.
Institutional investors are watching closely. The National Pension Service, which co-invested with MBK in the 2015 acquisition of Homeplus, is reportedly exposed to substantial potential losses and has publicly said it does not want pension assets used in hostile takeover attempts or control disputes.
Legal uncertainty surrounding MBK comes as the firm is pursuing a hostile takeover of Korea Zinc, one of the world’s largest zinc smelters. Investor attention has intensified after the U.S. government-backed Crucible JV disclosed a 2.83 trillion won ($2.1 billion) investment in Korea Zinc last month, securing a 10.59% stake, regulatory filings show.
Korea Zinc plans to use the funds to build an integrated smelting facility in Tennessee, aligning the company more closely with U.S. strategic interests in critical minerals. Market participants say the development could influence how North American institutional investors view MBK-related investments amid the ongoing legal proceedings.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
