The chairman of private equity firm MBK Partners, Kim Byung-ju, and three senior executives appeared at a Seoul court for an arrest warrant hearing over sales of short-term bonds from troubled retailer Homeplus. Prosecutors sought warrants on charges of fraud and violation of the Capital Markets Act. A decision on their potential arrest is expected later in the day.
On Tuesday, January 13, 2026, Kim Byung-ju, chairman of private equity firm MBK Partners, and three other senior executives appeared at the Seoul Central District Court for a hearing on arrest warrants related to the sale of short-term bonds from retailer Homeplus. Prosecutors requested the warrants against Kim and the executives, including a co-chief executive of Homeplus, on charges of fraud and violation of the Capital Markets Act.
Kim arrived at the court and entered the building without responding to reporters' questions, which included whether he acknowledged the allegations. The hearing began at 10 a.m., and a decision on their potential arrest is expected as early as later that day.
MBK Partners acquired a 100 percent stake in Homeplus in 2015 from British retailer Tesco Plc for 7.2 trillion won (US$4.9 billion). However, the retailer faced financial difficulties due to a slump in the discount store industry and entered court-led rehabilitation proceedings in March last year.
On February 28 last year, Korea Ratings downgraded Homeplus's credit rating to "A3 minus" from "A3." Four days later, Homeplus applied to the court for rehabilitation proceedings. MBK Partners is accused of selling a large-scale short-term bond of Homeplus around the time of this credit downgrade.
The case highlights ongoing scrutiny of private equity management practices in South Korea's retail sector.
