Photo: Kim Byeong-ju of MBK Partners. Credit: MBK Partners.
On January 7, the Public Prosecutors’ Office 검찰청 sought pre-trial detention for Kim Byeong-ju 김병주, also known as Michael Kim, chief executive officer of the private equity fund MBK Partners. The court denied the petition on January 13.
The 62-year-old investment banker, who grew his eponymous private equity fund to the largest in Asia, is the wealthiest individual in South Korea, with a net worth of US 9.5b. The Seoul Central District Court 서울중앙지방법원 will hear the PPO’s petition on January 13.
Kim is charged with violations of the Capital Markets Act 자본시장법 based on the bond issuance of Homeplus 홈플러스, a discount grocery store and retailer that MBK Partners acquired from Tesco in 2015.
Prosecutors allege that on February 17, 2025, Homeplus issued KRW 116.4b (USD 79m) in short-term bonds despite knowing that the company’s precarious financial position could lead to a downgrade of the bonds.
The bonds were downgraded on February 28 and Homeplus filed for bankruptcy on March 4, 2025, making the bonds virtually worthless just two weeks after their issuance. Three additional Homeplus executives also face pre-trial detention warrants.
