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Miami Herald
19-05-2025
- Business
- Miami Herald
Top Asian private equity fund chief hit with foreign travel ban: reports
SEOUL, May 19 (UPI) -- South Korean prosecutors have reportedly banned MBK Partners Chairman Michael Byungju Kim from leaving the country as part of an investigation into the so-called Home Plus bond scandal. MBK is one of Asia's top private equity funds, and Home Plus is South Korea's No. 2 discount chain. Multiple local media outlets reported Monday that the Seoul Central District Prosecutors' Office requested the U.S. Ministry of Justice to impose a foreign travel ban on Kim and obtained approval. He is a U.S. citizen. The measure follows an earlier move by the prosecution Saturday when Kim returned to Seoul from London. Authorities executed a search and seizure warrant upon his arrival in Korea, confiscating his mobile phone and other digital devices as evidence, according to reports. Observers expect that Kim will be summoned along with his close aides for formal questioning in the near future. "In South Korea, the seizure of mobile phones and a travel ban typically means that a summons is imminent. Kim is highly likely to meet prosecutors face-to-face soon," business tracker Leaders Index CEO Park Ju-gun told UPI. "If top executives of Home Plus or MBK Partners decided to issue bonds while having prior knowledge of a credit cut, they might be in legal trouble," he added. The ongoing probe centers around allegations that executives from Home Plus and its parent firm MBK issued a large volume of bonds Feb. 25 while already aware of an impending downgrade in Home Plus's credit rating, which occurred Feb. 28. Issuing bonds while knowing a credit downgrade could constitute fraud against investors. Home Plus has denied the allegations, but the Financial Supervisory Service countered that the financial regulator secured concrete evidence to the contrary. In addition to the prosecution's investigation, the FSS announced last March that it would look into MBK. The results of that inquiry are also expected in the near future. MBK acquired Home Plus in 2015 from Tesco for $5.1 billion. However, the chain, which runs hundreds of stores across the country, has suffered losses since 2021 due to the impact on business of COVID-19 and rising competition from online retailers. Comments from MBK were not available. Copyright 2025 UPI News Corporation. All Rights Reserved.
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.
Korea Herald
15-05-2025
- Business
- Korea Herald
When is foreign too foreign? Korea's takeover tensions
Recent PE-involved M&A deals draw heated debate on security of key strategic technologies A recent streak of mergers and acquisitions led by private equity firms has intensified the debate over foreign-owned companies investing in Korean businesses, raising concerns about the possible outflow of key strategic technologies At the center of the controversy is a recent revision to the Enforcement Decree of the Act on Prevention of Divulgence and Protection of Industrial Technology. The updated regulation, set to take effect on July 22, does not apply "foreign investment" provisions to Korean-registered private equity firms, even if they are effectively controlled by foreign nationals. Previously, the government had considered including such firms under the scope of foreign investors. If enacted, this would have required them to seek prior approval from the Ministry of Trade, Industry and Energy before investing in local companies holding 'national core technologies.' In 2022 at an Industrial Technology Protection Committee meeting, former Industry Minister Lee Chang-yang noted that 'M&As led by local private equity firms, owned by foreigners, are tricky cases to handle." Yet the proposal was excluded from the final version of the revised decree. Experts point out that the revision has a loophole, as it does not define an investment led by a Korea-domiciled company controlled by foreign nationals as foreign. De facto control should be considered when categorizing foreign investment. 'It is not that all foreign nationals are likely to leak core technologies to other countries. That would be an exaggeration, almost xenophobic,' said a professor who specializes in technology security and wished to remain anonymous. 'But without tighter regulations on foreign ownership, foreign capital could indirectly acquire key technologies through domestic entities or funds. The legal loop provides grounds for the overseas leakage of key technologies.' A recent series of M&A deals led by such firms has brought more attention to the revised regulation and its shortcomings. Of the 'big four' PE firms in Korea, two are headed by foreign nationals. Korea Zinc, the world's largest refined zinc smelter, has been engaged in a power struggle against private equity giant MBK Partners since a buyout attempt in September. In a defensive effort to maintain control of the company, Korea Zinc called into question the nationality of the PE firm's chief and the company's funding sources. MBK is led by founder and Chair Michael Byung-ju Kim, a US national. To fend off the MBK camp, Korea Zinc acquired approval from the government to designate its high-nickel precursor manufacturing process as a national core and high-tech strategic technology, which would give the government approval rights in case of an acquisition of Korea Zinc by a foreign company. Though the designation was unlikely to block off MBK's takeover attempt, as the PE is not registered as a foreign company, it was seen as a move to pressure the rival by highlighting the potential of security threats. On a similar note, local chip-to-energy conglomerate SK Group is considering selling its controlling stake in SK Siltron, a semiconductor wafer producer. Local private equity house, Hahn & Co,. is named as a strong contender, given its close ties with the conglomerate. The PE firm has executed multiple deals with SK Group in recent years. Yet again, the nationality of its chief has come into question. While Hahn & Co. is a Korea-registered private equity house, its Chief Executive Officer Scott Sang-won Hahn is a US national. With SK Siltron's crystal growing technology designated a national core technology, a cross-border sell-off of the affiliate would require approval from the government. Hahn & Co., registered here, would be qualified without governmental approval. But the pressure of a potential security breach could work as a pressure, even undermining the firm's big store of dry powder and its strong chip network. 'When it comes to M&A deals on institutions with key strategic technology, the focus should rather be on how the given technology would be managed throughout the years,' an official from a local private equity firm said. 'A safety net is necessary, but the idea of raising guards against a company just because of a foreign national chief is outdated.'
Malay Mail
03-05-2025
- General
- Malay Mail
Kuantan to host national Firefighters Day tomorrow; expect aerial shows, snake training and more
KUANTAN, May 3 — The national-level 2025 World Firefighters Day celebration will be held at the Kuantan City Council (MBK) 1 field, Jalan Mahkota here tomorrow. The celebration will be graced by the Sultan of Pahang, Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah, and Tengku Ampuan of Pahang Tunku Azizah Aminah Maimunah Iskandariah. Pahang Menteri Besar Datuk Seri Wan Rosdy Wan Ismail and Minister of Housing and Local Government Nga Kor Ming are also scheduled to attend the celebration, scheduled to start at 8 am. Malaysian Fire and Rescue Department (JBPM) Zone 1 (Selangor) deputy chief Senior Superintendent II Nur Hafizah Mohammad Lukman, in inviting the public to attend the celebration, themed 'Bomba Tonggak Penyelamatan Negara', said various events would be held. She said among the highlights would be the Mi-17 helicopter show and parachute jumps by smoke jumpers, as well as the parade by the red heroes' contingents. 'There will also be exhibitions, including one on drones by the JBPM Air Division, and on snakes by the Training Division. 'We also have a smoke house demonstration, which is aimed at educating and teaching the public how to escape when a fire breaks out at home,' she said when contacted by Bernama. There will also be an exhibition by the Lion Club, which is also providing free eye health screenings. The celebration is scheduled to be broadcast live on Radio Televisyen Malaysia (RTM) 1 on the Selamat Pagi Malaysia programme. Several roads will be closed in conjunction with the event from 6 am to 1 pm tomorrow, namely the whole stretch of Jalan Mahkota, Jalan Besar starting from Hotel Lovita to Jalan Penjara, Jalan Bukit Ubi heading to Jalan Mahkota and Jalan Penjara heading to Jalan Mahkota. The World Firefighters Day celebration will continue with the 'Larian Bersama Bomba 2025' programme at Dataran Kemerdekaan Shah Alam, Selangor, on May 17. — Bernama
Hype Malaysia
28-04-2025
- Entertainment
- Hype Malaysia
Former DIA Member Somyi To Make Comeback In The K-pop Industry After Prison Sentence
Former DIA (다이아) member Somyi (안소미) has announced her return to the Korean entertainment industry. While such news wouldn't be shocking to most, Somyi's situation is different as she had recently served a prison sentence. In February 2024, Somyi was sentenced to 18 months in prison for falsely accusing the CEO of her former management company of sexual assault. She appealed the decision, and in June 2024, her case concluded with the court suspending her initial sentence for two years and ordering her to complete 160 hours of community service. Following the suspended sentence, Somyi was released. Recently, Somyi's new agency, Moden Berry Korea (MBK), announced the idol's return to the K-pop scene. The agency also posted photos of Somyi participating in profile image photoshoots on their social media. Speaking to TENASIA, MBK stated, 'Somyi is an artist attracting attention for her consistent growth and distinctive presence,' adding that she is 'currently considering various content opportunities and activities.' One of these activities, announced earlier this month, involves the production of a new boy group, tentatively named Earth Boys. MBK revealed, 'Somyi will be involved in all aspects of the debut project for the new boy group, including music and performance production, concept planning, and visual directing.' The group is expected to debut sometime in 2028. Unfortunately, Somyi's imprisonment isn't her only controversy. Before her imprisonment, Somyi made her debut on a streaming platform, producing NSFW and mature content. Fans were left disappointed upon discovering that the former girl group member had become a broadcast jockey (BJ) for adult content on PandaTV. For those unfamiliar, the platform is known primarily for its raunchy, adult-oriented material. She has since retired from PandaTV and is no longer streaming on the platform. Given the nature of the Korean entertainment industry, which is known for its strong cancel culture, many fans are questioning whether redebuting is the right move for her, particularly as she has only recently completed a prison sentence. What do you think? Source: Koreaboo Nakhla Sabrina contributed to this article
