South Korea prosecutors seek arrest warrant for MBK Partners chairman

South Korean prosecutors requested arrest warrants for MBK Partners chairman Kim Byung-ju and three others over the sale of supermarket chain Homeplus, and MBK has denied the allegations.

South Korean prosecutors on Jan. 7 requested arrest warrants for Kim Byung-ju, chairman of private equity firm MBK Partners, and three other people in connection with the sale of supermarket chain Homeplus. The Supreme Prosecutors' Office said the filings allege fraud and breaches of the Capital Markets Act tied to a 2025 debt issue. Authorities are investigating whether MBK approved the debt despite a prior credit downgrade that could have affected investors. MBK Partners has rejected the allegations and said it will challenge the warrant requests in court. Known details: - The Supreme Prosecutors' Office filed warrant requests for Kim and three others on charges of fraud and breach of the Capital Markets Act. - Prosecutors are examining whether MBK approved Homeplus's 2025 debt issue despite prior knowledge of a credit downgrade. - MBK Partners has issued a statement rejecting the allegations and said it will strongly challenge the warrant applications in court. - The financial market watchdog is also investigating MBK Partners and has not concluded its review. - In June, the Seoul Bankruptcy Court approved appointing accounting firm Samil PricewaterhouseCoopers to manage the Homeplus sale after MBK filed for court-led restructuring in March; the retailer has not yet found new owners. Summary: Prosecutors have sought arrest warrants in relation to the Homeplus sale and MBK disputes the claims. Regulatory and court processes are ongoing. Undetermined at this time.