19-05-2025
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.
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