Latest news with #Homeplus
Bloomberg
23-05-2025
- Business
- Bloomberg
Private Equity Tycoon Becomes Mired in Probe Over Korea Buyout
Michael ByungJu Kim, one of Asia's most prominent private equity tycoons, built his MBK Partners Ltd. into a regional powerhouse with marquee deals and tens of billions in assets under management. Now, a controversial bet on Homeplus, once the nation's second-largest supermarket chain, has returned to haunt him.
Korea Herald
19-05-2025
- Business
- Korea Herald
MBK chief barred from leaving Korea in Homeplus fraud case
South Korean prosecutors have imposed a foreign travel ban on Michael Byung-ju Kim, chairman of Seoul-based private equity giant MBK Partners, as part of an investigation into fraud allegations related to the short-term debt issuance by supermarket chain Homeplus. The Seoul Central District Prosecutors' Office reportedly requested the Justice Ministry to place an exit ban on Kim. Prosecutors sought the travel restriction out of concern that Kim might not cooperate with the ongoing probe if allowed to leave the country. He also failed to appear at a National Assembly audit concerning the matter. On Saturday, prosecutors conducted a raid on Kim at Incheon Airport upon his return from London. During the operation, they retrieved a mobile phone used by Kim. MBK and its portfolio company Homeplus are accused of issuing asset-backed short-term bonds while allegedly anticipating a credit rating downgrade that was publicly disclosed on Feb. 28. Homeplus filed for court-led rehabilitation on March 4. The prosecution has been intensifying its investigation into MBK's top management. In late April, it raided the headquarters of both Homeplus and MBK Partners, as well as the residences of Kim; Kim Kwang-il, a partner at MBK and co-CEO of Homeplus; and Joh Joo-yun, also a co-CEO of Homeplus. Kim founded MBK in 2005. The firm, recognized as the largest buyout firm in Northeast Asia, manages over $30 billion in assets. Kim is among South Korea's wealthiest individuals, with a net worth of $9.7 billion as of 2024. In 2015, MBK acquired Homeplus for approximately $5 billion, marking the largest private equity-led deal in Asia at the time.
Reuters
19-05-2025
- Business
- Reuters
South Korea prosecutors impose foreign travel ban on MBK Partners chairman, Yonhap says
SEOUL, May 19 (Reuters) - South Korean prosecutors have imposed a foreign travel ban for the chairman of MBK Partners Kim Byung-ju as part of a probe into the Homeplus supermarket chain controlled by the private equity firm, the Yonhap News Agency reported. The probe by prosecutors into MBK and Homeplus is over a short-term bond issue by the troubled retail entity and whether management was aware a credit downgrade was likely, Yonhap said, citing unnamed judicial authority sources. Kim, who is also known as Michael ByungJu Kim and is an American citizen, was returning from London to Incheon International Airport on Saturday where he was met by prosecution officials who also executed a search warrant to confiscate his mobile phone, Yonhap said. The Seoul Central District Prosecutors' Office could not immediately be reached by telephone for comment. A spokesperson for MBK Partners declined to comment on the report. MBK Partners, which Kim founded in 2005, acquired Homeplus from Tesco (TSCO.L), opens new tab in 2015.
Korea Herald
28-04-2025
- Business
- Korea Herald
Homeplus, MBK Partners HQs raided over controversial short-term debt sale
Prosecutors carried out a search and seizure operation at the headquarters of Korea's second-largest supermarket chain, Homeplus, and its largest shareholder, private equity firm MBK Partners, on Monday, as part of an investigation into alleged fraud and violations of the Capital Market Act. The Seoul Central District Prosecutors' Office announced that officials were dispatched to secure financial records in order to trace the flow of funds as Homeplus' financial health began to deteriorate after MBK Partners acquired the supermarket in 2015, culminating in losses of approximately 200 billion won ($138 million) in 2023. The retailer decided to apply to enter a rehabilitation program at the Seoul Bankruptcy Court on March 4. The search and seizure operation was conducted on suspicion of soliciting bond investments while deceiving investors, according to the prosecution. Prosecutors suspect that both Homeplus and its major shareholder, MBK Partners, had advance knowledge of the retailer's credit rating downgrade, but they continued to issue a large amount of short-term bonds and abruptly filed for rehabilitation, transferring the losses to investors and putting some 19,000 employees, 6,000 suppliers and partners in jeopardy. On Feb. 28, the Korea Investors Service downgraded Homeplus' credit rating from A3 to A3-, citing weak profitability, excessive debt and increasing uncertainty about the company's mid- to long-term competitiveness. Investigators believe Homeplus and MBK were informed about the rating downgrade at least by Feb. 25, when they received a preliminary notice from the credit agency. Despite knowing the company's rating was likely to decline, Homeplus issued asset-backed short-term bonds worth 82.9 billion won through Shinyoung Securities on Feb. 25. The prosecution reportedly claimed that selling bonds to investors in anticipation of corporate rehabilitation could be considered fraud, as such rehabilitation puts a hold on the financial procedures related to the debt, including interest payments. Four stock brokerage houses, including Shinyoung Securities, filed criminal complaints against Homeplus executives, alleging fraud for selling bonds while being aware of the rating downgrade and the upcoming corporate rehabilitation on April 1. The Financial Supervisory Service previously announced in a briefing on April 24 that it had secured concrete evidence that Homeplus and MBK Partners had been aware of the downgrade and planned to file for corporate rehabilitation for quite some time. South Korea's financial watchdog conducted an inspection into potential irregularities in the Homeplus scandal starting in mid-March, transferring records related to the controversial short-term debt sale to the prosecution on April 21. Prosecutors are reportedly scheduled to investigate MBK Partners Chairman Kim Byung-joo, MBK Partners Vice Chairman and Homeplus co-CEO Kim Kwang-il, and Homeplus President and co-CEO Joh Joo-yun as suspects. Detailed information about the investigation process has yet to be announced.
Forbes
14-04-2025
- Business
- Forbes
Korea's 50 Richest 2025: Political Turmoil And U.S. Tariffs Take Toll On Wealth
No. 1, Michael Kim. This story is part of Forbes' coverage of Korea's Richest 2025. See the full list here. South Korea experienced its biggest political crisis in decades, triggered by the short-lived declaration of martial law in December by then-President Yoon Suk Yeol, who was suspended and eventually impeached. The turmoil as well as U.S. tariffs impacted the country's benchmark Kospi index, which declined 15% since we last measured fortunes 12 months ago. The collective net worth of the country's 50 richest fell to $99 billion from $115 billion last year. ss The fortunes of 32 listees declined, including that of private equity maven Michael Kim, who reclaimed the No. 1 position after a year's gap, despite a slight drop in his net worth to $9.5 billion. His MBK Partners was in the spotlight after its debt-laden Homeplus hypermarket chain ran into financial trouble and filed for corporate rehabilitation. The wealth of Jay Y. Lee, executive chairman of Samsung Electronics, also shrank by $3.7 billion to $7.8 billion and he slipped to second place from being the richest last year. The company was slow to ride the AI boom, making it one of the laggards among tech stocks. The biggest gainer in dollar terms this year was Meritz Financial Group chairman Cho Jung-ho, whose fortune shot up by $1.5 billion to $7.7 billion and he climbed one spot to become the country's third-richest person. The financial heavyweight reported record net profit of 2.3 trillion won ($1.6 billion) in 2024, following the merger of its insurance and securities units. Another fortune to take a hit was that of Kwak Dong Shin, Hanmi Semiconductor's chairman and CEO, whose wealth plunged by more than two-thirds to $1.25 billion. Shares of the semiconductor packaging equipment maker more than halved from a year ago as revenue growth lost steam. The biggest gainer in percentage terms was Park Soon-jae, cofounder and CEO of biotech firm Alteogen, whose wealth got a 68% boost to $2.4 billion after it signed a clutch of lucrative licensing deals. In March, it inked two worth $1.4 billion with pharma giant AstraZeneca to use its enzyme technology to develop subcutaneous (injected just beneath the skin) cancer drugs. There are three newcomers this year: Kim Jung-soo & Chun In-jang, the couple behind Samyang Foods, who got a lift from buoyant overseas sales of its spicy Buldak noodles; Kim Hyung-tae, founder of online games developer Shift Up, joins the ranks after raising $320 million in what was South Korea's second-largest listing last year; and Jung Sung-jae, founder of medical aesthetic device firm Classys, which saw its shares surge 50% thanks to the growing K-beauty craze. Four listees returned to the ranks after previously dropping off, including Lee Hwa-kyung, who owns a stake in Orion Holdings, the parent outfit of the confectionery and foods group founded by her late father, Lee Yang-gu. Seven from last year didn't make the cut, including former billionaire Ryu Kwang-ji, whose chemicals and EV battery maker Kumyang was roiled by slowing EV sales. The minimum net worth to make the list fell to $665 million from $775 million last year. Full Coverage of Korea's Richest 2025: Reporting by John Kang and Zinnia Lee. Methodology: This list was compiled using shareholding and financial information obtained from the families and individuals, stock exchanges, annual reports, analysts, government agencies and other sources. Net worths were based on stock prices and exchange rates as of the close of markets on April 7, 2025 and private companies were valued based on similar companies that are publicly traded. Real-time net worths on may reflect different valuations. The ranking lists both individual and family fortunes, including those shared among relatives and may differ from the World's Billionaires List, which includes individual fortunes with net worths as of March 7. The list can also include foreign citizens with business, residential or other ties to the country, or citizens who don't reside in the country but have significant business or other ties to the country. The editors reserve the right to amend any information or remove any listees in light of new information.
