MBK rejects tax evasion allegations against chairman

Michael ByungJu Kim, chairman of MBK Partners, speaks during his appearance before a National Assembly audit by the National Policy Committee in Seoul, Tuesday. Yonhap

MBK Partners denied allegations of domestic tax evasion involving the firm and its chairman, Michael ByungJu Kim, emphasizing that all taxes have been duly paid in full compliance with relevant domestic and international laws.

A company official said Friday that the private equity firm has consistently filed and paid corporate and income taxes in every country where it operates, including Korea.

“The chairman has also met his tax obligations in accordance with Korean law and the standards of the relevant tax authorities,” the official said. “Claims that he engaged in tax avoidance through nonresident filings are entirely unfounded.”

The statement came in response to allegations raised Thursday during a National Assembly audit by the Strategy and Finance Committee, where lawmakers from the ruling Democratic Party of Korea (DPK) accused Kim, a U.S. citizen, of evading taxes in Korea.

Lawmakers, including Rep. Chung Il-young, argued that Kim has earned significant profits domestically while paying little to no taxes, urging that he be summoned to testify and that a comprehensive tax probe be launched.

“Kim, who topped Forbes’ 2025 list of Korea’s wealthiest individuals with an estimated net worth of $9.8 billion, appears to have paid almost no taxes despite generating vast profits in the country,” Chung said. “A full-scale tax investigation is warranted.”

In response, MBK explained that it is a private equity management firm oversees funds entrusted by around 150 institutional investors, including pension funds, insurers and sovereign wealth funds, from both Korea and abroad.

“The majority of investment returns are distributed to these institutional investors, while MBK pays corporate and income taxes solely on the management fees it receives,” the company official said.

“There is no structural mechanism that would allow us to transfer profits overseas or avoid taxes from our Korean investment activities. All domestic operations are conducted transparently under the supervision of the National Tax Service (NTS) and other relevant regulators.”

The firm added that it has always cooperated fully with previous NTS audits, providing all requested documents and information.

“Even when certain matters required clarification in the interpretation of tax laws, we accepted the authorities’ rulings without objection and promptly fulfilled all related tax obligations,” the official said.