Prosecutors request arrest warrant for chairman of MBK Partners over Homeplus

MBK Partners Chairman Kim Byung-ju joins an audit by the National Assembly's National Policy Committee, Oct. 14, 2025. Yonhap

Prosecutors have sought a warrant for the chairman of private equity firm MBK Partners, Kim Byung-ju, to question him over the management of troubled retailer Homeplus Co., according to sources familiar with the matter Thursday.

The Seoul Central District Prosecutors Office requested the warrant Wednesday to question Kim and three senior executives, including a co-chief executive of Homeplus, on charges of fraud and violation of the Capital Markets Act, according to the sources.

MBK Partners acquired a 100 percent stake in Homeplus in 2015 from British retailer Tesco Plc for 7.2 trillion won ($4.9 billion). The retailer, however, became financially strapped due to a slump in the discount store industry and eventually entered court-led rehabilitation proceedings in March last year.

MBK Partners has been accused of allegedly selling a large-scale short-term bond of Homeplus around the time of the credit downgrade for the retailer.

On Feb. 28 last year, Korea Ratings downgraded its credit rating of Homeplus to "A3 minus" from "A3." Four days later, Homeplus asked a court to grant rehabilitation proceedings.