Court Rejects Arrest Warrant for MBK Partners' Michael Kim Amid Fraud Allegations

A South Korean court has rejected the arrest warrant for Michael Byungju Kim, head of MBK Partners, concerning allegations of fraud following the sale of Homeplus. Prosecutors claim MBK was aware of a credit downgrade risk and engaged in accounting fraud. MBK denies all allegations, asserting innocence.

A South Korean court on Wednesday decided against issuing an arrest warrant for Michael Byungju Kim, chairman of MBK Partners, concerning the troubled sale of Homeplus. This development follows a request by prosecutors, who suspect fraud and breaches of the Capital Markets Act.

Authorities allege that MBK Partners may have sanctioned a debt issue for Homeplus in 2025, fully aware of a looming credit downgrade that could lead to investor losses. Furthermore, the firm is accused of altering repayment terms of significant company shares to mask financial struggles.

MBK Partners categorically denies the accusations, maintaining that they are unsubstantiated. Founded by Kim in 2005, the private equity firm is a major player in Asia's financial market, boasting over $32 billion in capital and focusing on North Asian investments.

(With inputs from agencies.)