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Michael B. Kim, Chairman of MBK Partners [Photo: Yonhap News Agency] |
[Alpha Biz= Paul Lee] SEOUL (Feb. 5, 2026) – South Korea’s Financial Supervisory Service (FSS) has referred the management of MBK Partners, including Chairman Michael ByungJu Kim, to the prosecution over alleged Capital Markets Act violations related to the "Homeplus scandal."
Referral to Prosecution: In December, the FSS utilized a "Fast-Track" procedure to notify prosecutors of alleged fraudulent trading and unfair practices. This follows an intensive probe into the private equity firm’s 2015 acquisition of Homeplus and its Leveraged Buyout (LBO) funding structures.
Specific Allegations: Management is accused of issuing 116.4 billion KRW in short-term debt while allegedly concealing a pending credit rating downgrade. Additional charges include a 1 trillion KRW accounting fraud and falsification of audit reports.
Investigation Status: Although recent arrest warrants for Chairman Kim and three other executives were dismissed due to "insufficient grounds for detention," the prosecution has reassigned the case to the 2nd Anti-Corruption Investigation Division for a comprehensive and objective review.
MBK Partners has consistently faced scrutiny over its exit strategies and financial engineering regarding Homeplus. The prosecution is expected to expand its investigation based on the additional evidence provided by financial authorities.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
